Charles Schwab and TD Waterhouse Group have settled
a lawsuit in which Schwab accused TD Waterhouse of "deceptive,
misleading and patently false" television advertising.
In a joint statement, two of the nation's
heavyweight discount brokers said they mutually greed to end both the
advertisements and the legal proceedings.
Schwab filed the lawsuit in March in response to TD Waterhouse
television advertisement that, according to the suit, suggested
Schwab's prices were more similar to those of a full commission firm
than of a discount broker.
Ironically, the advertisements featured actor Sam Waterston of the "Law & Order" television drama series.
"The prompt resolution was the result of both companies' desire to move
forward with their businesses, without the distraction and expense of
litigation," the statement said.
Under the terms of the agreement, TD Waterhouse will discontinue the advertisements challenged by Schwab.
"In addition, TD Waterhouse apologized for certain of its television
advertisements which characterized Schwab as among 'higher priced'
brokerage firms and which may have created negative impressions about
the quality of Schwab's customer service," the statement said.
At the time the lawsuit was filed, Schwab claimed TD Waterhouse had
previously agreed in writing to stop the advertising, but instead ran
the advertisements 28 additional times.