US top court rejects Charles Schwab appeal

Washington - The US Supreme Court on Monday left intact an appeals court decision that allowed a financial adviser to sue Charles Schwab Corp over allegations that the brokerage firm deviated from objectives set for a mutual fund, costing investors millions of dollars in losses.

The court rejected Schwab's appeal of a March ruling by the 9th US Circuit Court of Appeals that revived the lawsuit.

The appeals court said Northstar Financial Advisors Inc could sue on behalf of its clients and that Charles Schwab should face claims of breach of contract over the alleged losses in the Schwab Total Bond Index fund. Other claims in the original lawsuit are still pending.