Fla. City Sues Wachovia Over $15M Lehman Loss

Law360, New York (March 26, 2010, 7:21 PM EDT) -- The city of St. Petersburg, Fla., has slapped Wachovia Bank NA with a breach of contract lawsuit alleging the bank failed to warn it of Lehman Brothers Holdings Inc.'s imminent demise, resulting in a $15 million loss.

The lawsuit filed Tuesday in the U.S. District Court for the Middle District of Florida claims Wachovia, which was acquired by Wells Fargo & Co. at the end of 2008, failed to warn St. Petersburg that Lehman was going under, which was its fiduciary and contractual obligation.

“Wachovia denies...
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