It finds lawyers to work on contingency and pays 90% of litigants' other costs, including travel, expert witnesses and local counsel--in exchange for a lawyer-size fee: 30% to 50% of what's left after the lawyer takes his fee, perhaps 33% of a settlement.
Although Schwab says it has no plans to offer a full advisory service, only aids to self-help, the fee-based financial advisers to whom it currently refers counsel-seeking clients (in return for a fat commission) fear that is where it is heading.
The lead plaintiff position is key in securities class-actions because it comes with the authority to select a lead counsel, a highly sought after role for law firms that almost always charge a percentage fee based on any recovery.