Ameritrade, Wachovia Sued Over Auction Rate Sales

Law360, New York (March 20, 2008, 12:00 AM EDT) -- In the wake of the collapse of the auction rate securities market last month, two more investment banks have been hit with lawsuits alleging that they misled investors about the investment vehicles.

In lawsuits filed on Wednesday in the U.S. District Court for the Southern District of New York, law firm Girard Gibbs LLP accused Wachovia Corp. and TD Ameritrade Holding Corp. of “deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded,” according to one of...
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