Investors sue Charles Schwab over low-paying cash-sweep accounts

Three investors are suing Charles Schwab for alleged breach of fiduciary duty, claiming the company designed its cash-back program to provide “outsized” benefits for itself at the expense of customers.

The lawsuit was filed last week in federal court in Los Angeles by Mary Loughran, Rosemary Orlando and Edward Carr. The plaintiffs are seeking class action status on behalf of themselves and other Schwab customers.

The one…