On April 14th, the federal district court overseeing a lawsuit alleging that Charles Schwab Corp. misled mutual fund investors by failing to disclose adequately its decision to move half of its YieldPlus portfolio into mortgage backed securities, addressed the measure of damages recoverable under Section 12 of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act. The court held that with respect to a mutual fund that materially misrepresents its investment strategy, a new investment decision is deemed to be made by investors once they learn or should learn, in the exercise of reasonable diligence, the fund's true investment strategy. At that time, investors have the clear choice to redeem versus to accept the actual investment strategy and remain with the fund. Any further decline in the NAV is for the account of the investors, just as any subsequent gains would be. In re Charles Schwab Corporation Securities Litigation.