Wells Fargo Nailed With $10.4M Verdict Over Lehman Loss

Law360, New York (April 5, 2012, 8:10 PM EDT) -- A Florida federal jury hit Wells Fargo Bank NA with a $10.4 million verdict Tuesday, finding it liable for Wachovia Global Securities' breach of contract to the city of St. Petersburg, Fla., when it failed to notify officials of a failing Lehman Brothers Holdings Inc. investment.

The jury held that Wachovia, which was bought by Wells Fargo in 2008, breached its contract with the city when it did not inform it of Lehman's imminent demise, which cost St. Petersburg $15 million.

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