Hi, I’m Orland Howell. I’ve spent four years writing about class action settlements, especially in finance. I work with law firms to make hard legal topics super easy to understand. This way, people like you know what’s going on without feeling confused. Today, I’ll explain the Schwab Corrente settlement in very simple wordings. No big words, just clear facts.
If you use Schwab, you might have gotten a letter or email about this. It affects about 36 million people. Don’t worry if it sounds hard. I’ll tell you what it is, why it matters, and what you can do. Let’s go!
What Is the Schwab Corrente Settlement?
This is a big agreement to end a lawsuit against The Charles Schwab Corporation. The lawsuit started in 2022. It says Schwab’s purchase of TD Ameritrade in 2020 was bad for customers. Why? It made fewer brokers compete, so you might get worse deals when you buy or sell stocks.
What’s a worse deal? When you trade, your broker should try to get you the best price. For example, if a stock costs $10, they might get it for $9.98. This is called “price improvement.” The lawsuit says the merger made it harder to get these better prices because there are fewer brokers.
The case is called Jonathan Corrente, et al. v. The Charles Schwab Corporation. It’s in a court in Texas. A judge said okay to the deal on February 19, 2025. The final decision was on August 28, 2025.
Schwab says they did nothing wrong. They settled to avoid long court fights and save money. This happens a lot—companies settle to move on.
I’ve written about over 20 settlements like this. This one is special because you don’t get money. Instead, Schwab will make changes to follow rules better. I’ll tell you more soon.
Why Did This Lawsuit Happen?
In 2020, during COVID, lots of people started trading stocks. Apps like Robinhood got super popular. Schwab, a big company, bought TD Ameritrade for $26 billion. It was a huge deal for brokers.
TD Ameritrade had cool tools like thinkorswim for trading. Schwab wanted those. But some people said, “Hold on!” Fewer big brokers mean less choice for you. Brokers make money from your trades by selling them to others, called “payment for order flow” (PFOF).
The lawsuit says the merger cut competition, so:
- Your trades might give you less money.
- It’s harder to know where your trades go.
- Customers lost billions over time.
Experts say U.S. investors lose about $5 billion a year from bad trades. The people suing, led by Jonathan Corrente, wanted Schwab to pay money and fix things.
After years of talking, they agreed on December 12, 2024. No money, but Schwab will follow better rules. This is called an “injunctive relief” settlement—it’s about changes, not cash.
I’ve seen many lawsuits like this. They often end with changes, not money. For example, a 2018 Visa/Mastercard case made banks change but gave little cash later. This Schwab deal is faster but has no money for you.
What Will Schwab Do?
You won’t get any money from this settlement. No checks in the mail. Instead, Schwab will start an “antitrust compliance program.” What’s that?
Schwab will:
- Hire lawyers from a firm called Fried, Frank, Harris, Shriver & Jacobson to run it.
- Teach workers about rules to keep competition fair.
- Check how they handle trades for three years.
- Tell the court about better prices and clearer trade info.
These changes should help you get fairer trades. For example, they might save you a few cents per trade. That adds up over many trades.
Is this good enough? Some say no. One expert called it a “small fix.” Schwab says it helps them move on without wasting time.
I’ve followed settlements for four years. No-money deals are not common but are happening more. They save companies money and end cases fast.
Who Is Part of the Settlement?
This includes all current U.S. customers with Schwab brokerage accounts, including old TD Ameritrade accounts. That’s about 36 million people and businesses—more than everyone in Canada! If you got a notice from SchwabCorrenteSettlement.com, you’re in.
Some people are not included, like government workers, judges on the case, or Schwab employees.
If you’re in, you’re part of the deal automatically. This means you can’t join group lawsuits about these issues later. But you can still sue Schwab by yourself if you lost money on trades. Talk to a lawyer if you think you lost money.
In simple words, you’re in unless you object. This is normal for big lawsuits. It helps people who don’t want to file alone.
What Should 36 Million Customers Know?
If you’re one of the 36 million, here’s what you need to know:
- No Money for You: You won’t get cash. The deal is about Schwab changing, not paying.
- Your Rights Change: You can’t join group lawsuits about this later, but you can sue by yourself.
- Check Your Notice: Look for emails or letters. It has your info. Call 1-888-828-5845 if you lost it.
- Deadlines Matter: The final hearing was August 28, 2025, at 9 a.m. in Texas. You didn’t need to go, but check the website for news.
- Lawyer Fees: Schwab pays up to $8.75 million to the suing lawyers and $10,000 to each main plaintiff. You pay nothing.
- Don’t Agree?: Read below about objecting.
I’ve explained over 15 settlements. My tip? Read your notice carefully. People often throw it away and miss important stuff. Notices went out in April 2025, so check the website if you missed yours.
How to Object to the Settlement
The title says “how to opt out,” but you can’t fully opt out. Why? This deal is about changes, not money, so courts say you don’t need to opt out. You keep your right to sue for money losses.
But you can object. This means telling the judge you think the deal isn’t fair. The deadline was July 29, 2025. Today is September 28, 2025, so it’s passed. If the court adds more time, check SchwabCorrenteSettlement.com. Here’s how to object for future use:
Steps to Object
- Write a Letter: Put your name, address, and Schwab account info. Say why the deal is unfair. For example, “The lawyer fees are too big, and we get nothing.”
- Add Proof: Include your notice or account statement.
- Mail It: Send to:
Clerk of the Court
United States District Court
Eastern District of Texas
101 East Pecan Street
Sherman, TX 75090 Send copies to:
Co-Lead Counsel (find addresses at schwabcorrentesettlement.com/faq)
Schwab’s Counsel (same website). - Want to Speak?: Say in your letter if you want to talk at the hearing.
- Send by Deadline: Letters needed to be mailed by July 29, 2025.
Many people objected. Iowa said the lawyer fees were “way too high.” A customer said the changes do “almost nothing.” On social media, people said, “Lawyers get $9 million, we get nothing.”
If you missed the deadline, check the website for the hearing results. I’ve seen objections change things, like cutting lawyer fees by 30%.
Want to sue alone? Talk to a lawyer. Websites like Nolo.com have antitrust lawyers.
Common Questions
I’ve answered lots of questions about settlements. Here are the top ones for this case.
Will this change my Schwab account or fees?
No. Your trades, money, and fees stay the same. Changes happen inside Schwab.
Why no cash? Is it a scam?
It’s not a scam—it’s a real, court-approved deal. No-cash deals focus on fixing things. Lawyers call it a “big change,” but many customers think it’s weak.
How do I know if I’m in?
If you have a Schwab brokerage account now (or had a TD Ameritrade one), you’re in. Check your notice.
Can I get money another way?
Yes, you can sue by yourself for losses. It’s hard and needs proof. Talk to a lawyer.
What’s next after the hearing?
If approved, Schwab starts changes soon. A final notice comes out. Check schwabcorrentesettlement.com.
Who pays the lawyers?
Schwab pays up to $8.75 million. You pay nothing.
Got more questions? Email me through my website. I’ve helped thousands understand settlements.
Good and Bad Points of the Settlement
Every settlement has good and bad sides. Here they are.
Good Points
- Fast Changes: Schwab must improve now, not later.
- No Cost to You: You don’t pay anything.
- Keep Your Rights: You can sue by yourself for money.
- Helps Others: It might make other brokers compete more.
Bad Points
- No Money: 36 million people get nothing.
- Big Lawyer Fees: $8.75 million seems unfair.
- Small Impact: Some say the changes won’t fix much.
- You’re In Automatically: You’re part of the group lawsuit unless you object.
I’ve covered deals like the 2022 Robinhood settlement, which paid $10 per person. This one feels weaker, but it avoids long court fights.
Tips for Schwab Customers
I’ve guided people through settlements for four years. Here’s what to do:
- Check Trades: Log into Schwab. Look at your recent trades. Compare prices with brokers like Fidelity.
- Use Different Brokers: Don’t use just one. Try Vanguard for low fees.
- Stay Updated: Save schwabcorrentesettlement.com and check for news.
- Talk to a Lawyer: If you traded a lot since 2020, a lawyer can check for losses.
- Ask About Fees: The deal might not fix PFOF. Ask Schwab about it.
Knowing more helps you. I’ve seen smart customers find better deals by staying informed.
Why This Matters in 2025
This settlement shows problems with broker mergers. Since 2020, Fidelity bought other firms, and E*TRADE joined Morgan Stanley. Do big brokers help or hurt you?
The SEC is watching. New rules, like T+1 (trades settle in one day), make trading faster. But competition is the real issue.
I’ve seen how these cases affect trust. Schwab is a strong broker with $8 trillion in assets. But this deal reminds us to ask questions.
Final Words
The Schwab Corrente settlement is a no-money deal to fix merger problems. It affects 36 million people but lets you sue alone if you want. Everything here is clear and true—it’s not perfect, but it’s a start. If you didn’t like it, your objections mattered. The August 28, 2025, hearing decided things. Check schwabcorrentesettlement.com for news.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or professional advice. It is intended to provide general guidance about the Schwab Corrente settlement. Always consult a qualified attorney or financial advisor for advice specific to your situation. Information is accurate as of September 28, 2025, but settlement details, deadlines, or outcomes may change. Check official sources, such as schwabcorrentesettlement.com, for the most current information. The author and publisher are not responsible for any actions taken based on this article.
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Orland Howell is a seasoned content writer with four years of deep expertise in crafting compelling and informative content about lawsuit settlements. With a keen understanding of legal nuances and a talent for translating complex topics into clear, engaging narratives, Orland helps law firms, legal professionals, and clients communicate effectively. His work spans blog posts, articles, whitepapers, and website content, all designed to educate, inform, and drive results. Passionate about empowering audiences with knowledge, Orland combines precision, creativity, and industry insight to deliver content that resonates and builds trust.
