A large brokerage firm is being accused of mishandling their clients' money and routing most trades to a specific securities firm.

Louis Lim filed the lawsuit on May 8 in U.S. District Court in California against Charles Schwab, claiming the firm routed nearly 95 percent all of the clients' non-directed orders to UBS Securities LLC.

The lawsuit claims Charles Schwab did this because of “legally binding Equities Order Handling Agreements” it had with UBS. The suit said Charles Schwab breached its fiduciary duties by directing funds to UBS, and it “violates Schwab's duty of best execution.”

Lim is seeking class status for those who had non-directed orders handled by Charles Schwab, and is also seeking more than $5 million in damages plus court costs. Furthermore, the lawsuit seeks to prevent Charles Schwab from continuing to route nearly all of its non-directed orders to UBS.

Lim is represented by Timothy G. Blood, Thomas J. O'Reardon II and Sarah Boot of Blood Hurst & O'Reardon, LLP; Brian J. Robbins, Kevin A. Seely, Ashley R. Rifkin and Leonid Kandinov of Robbins Arroyo LLP; and Jeffrey R. Krinsk, William R. Restis and David J. Harris Jr of Finkelstein & Krinsk LLP. All the firms are located in San Diego.

U.S. District Court Northern District of California San Francisco Division case number 3:15-cv-02074

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