Wachovia, Customers Reach Accord In ARS Action

Law360, New York (June 15, 2010, 3:11 PM EDT) -- Wachovia Securities LLC has settled a putative class action alleging the bank misused its customers' investment accounts by purchasing auction rate securities without their permission and buying Puerto Rico bonds and then secretly selling them at a substantial loss.

Judge Louise W. Flanagan of the U.S. District Court for the Eastern District of North Carolina dismissed the case Monday after being notified that the parties had settled. Terms of the deal were not disclosed, and attorneys for the parties were not immediately available for comment Tuesday....
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