FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 of 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 30, 1995
THE CHARLES SCHWAB CORPORATION
(Exact name of registrant as specified in its Charter)
Delaware 1-9700 94-3025021
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
101 Montgomery Street
San Francisco, Ca 94104
(Address of principal offices)
(415) 627-7000
(Registrant's telephone number,
including area code)<PAGE>
Item 5. Other Events. Charles Schwab & Co., Inc.,
("Schwab"), a subsidiary of the Registrant has been named as
a defendant, and in one of the cases as a representative of
an alleged defendant class, in seven order flow class action
lawsuits filed in state courts in Minnesota, Illinois, New
York and Louisiana between August 12, 1993 and February 9,
1995. Each class action purports to be brought on behalf of
customers of Schwab who purchased or sold securities in the
over-the-counter market for which Schwab received monetary
payments from the market maker who executed the transaction.
The complaints allege that Schwab failed to disclose such
payments and wrongfully failed to remit such payments to
members of the class. The complaints seek remedies including
disgorgement by Schwab to its customers of all such payments.
Gordon Dumont v. Charles Schwab & Co., Inc. was brought
in Civil District Court for the Parish of Orleans in
Louisiana on behalf of a purported class of Louisiana
residents alleging violation of fiduciary and mandatory
duties under provisions of Louisiana civil law. On June 30,
1995, the court entered an order certifying the class with
respect to Louisiana residents who purchased or sold through
Schwab between February 1, 1985 and February 1, 1995, and
denying Schwab's motions to dismiss. Schwab is appealing
this order. Robert Thomas and Robert Kahn v. Charles Schwab
& Co., Inc. was brought in the 10th Judicial District Court
for the Parish of Nathitoches in Louisiana on behalf of a
-1-<PAGE>
purported nationwide class alleging violation of California
common law. Schwab has not yet been required to respond to
this complaint.
Charles Dahl v. Charles Schwab & Co., Inc., Kirk Dahl v.
Charles Schwab & Co., Inc. and Robert Olsen v. Charles Schwab
& Co., Inc., three separate but consolidated actions, were
brought in Hennepin County District Court in Minnesota on
behalf of a purported class of Minnesota residents alleging
violations of Minnesota common law and consumer protection
statutes. In April, 1994, the complaints were dismissed on
grounds of federal preemption. The dismissal is currently on
appeal before the Minnesota Supreme Court. Orman v. Charles
Schwab & Co., Inc. was brought in Cook County Circuit Court
in Illinois on behalf of a purported nationwide class
alleging violations of Illinois common law and consumer
protection law. The complaint was dismissed on grounds of
federal preemption in June, 1994. The dismissal is currently
on appeal before the Illinois court of appeal. Kenneth Guice
v. Charles Schwab & Co., Inc. was brought in New York Supreme
Court on behalf of a purported nationwide class alleging
violations of New York common law and commercial bribery
statute. The complaint was dismissed on grounds of federal
preemption in October, 1994. The dismissal is currently on
appeal before the Appellate Division of the New York Supreme
Court.
-2-<PAGE>
Although the ultimate outcome of these actions cannot
currently be determined, Schwab intends to vigorously dispute
the class certification as well as the merits of these
actions.
-3-<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
THE CHARLES SCHWAB CORPORATION
(Registrant)
By: /s/ A. John Gambs, III
_________________________
Name: A. John Gambs, III
Title: Executive Vice President &
Chief Financial Officer
Dated: July 21, 1995
-4-<PAGE>
