Northstar Financial Advisors Inc. v. Schwab Investments

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS FOURTH AMENDED COMPLAINT

Plaintiff Northstar Financial Advisors, Inc. (“Northstar”) brings this action against Schwab Investments, the members of the Board of Trustees of Schwab Investments, and Charles Schwab Management, Inc. (collectively, the “Defendants”). Before the Court is Defendants’ motion to dismiss Plaintiff s Fourth Amended Complaint (“FAC”). See ECF No. 214 (“FAC”); ECF No) 2Í7 (“Mot.”). Having considered the parties’ submissions, the relevant law, and the record in this case, the Court hereby GRANTS in part and DENIES in part Defendants’ motion to dismiss.

I. BACKGROUND

A. Factual Background

On Augu'st 28, 2008, Northstar filed its first complaint (“Original Complaint”) in this putative • class action on behalf of all persons who owned shares of the Schwab Total Bond Market Fund (the “Fund”) at any time from August 31, 2007 to the present. ECF No. 1 (“Compl.”) ¶ 1. North-star is a registered investment advisory and financial planning firm that serves both institutional and individual clients. Id. ¶ 9. Northstar manages both discretionary and nondiscretionary accounts on behalf of investors…