Wells Fargo Sued Over $7B Wachovia ARS Settlement

Law360, New York (May 5, 2011, 9:01 PM EDT) -- Investors filed a class action against Wells Fargo Securities LLC on Thursday in Delaware, claiming that the bank's Wachovia subsidiary cut them out of a $7 billion settlement related to the collapse of the auction rate securities market.

Wachovia Securities LLC settled a suit brought by the U.S. Securities and Exchange Commission and agreed to pay some its ARS investors' losses, but ignored clients of Wachovia Trust's clients, plaintiffs Diane and Harry Wilson said in a suit filed in Delaware Chancery Court.

“Wachovia and Wachovia Trust...
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