Bank Says Wachovia Misstated Value Of $1.5B RE-Backed CDO

Law360, New York (October 2, 2012, 5:25 PM EDT) -- The Luxembourg subsidiary of a German bank alleged Monday in New York federal court that Wachovia Capital Markets LLC fraudulently misstated the value of a $1.5 billion real estate-backed collateralized debt obligation issuance in 2006.

LBBW Luxemburg SA, owned by German lender Landesbank Baden-Wurttemberg, contends Wachovia misled investors about the strength of the CDO's capital structure after it could not sell the preference shares for the CDO at anywhere near the stated par liquidation value.

Wachovia, acquired by Wells Fargo Bank NA in 2008, bought $5.5...
To view the full article, register now.




Case Information

Case Title

LBBW Luxemburg S.A. v. Wells Fargo Securities LLC et al

Case Number



New York Southern

Nature of Suit

Contract: Other


J. Paul Oetken

Date Filed

September 28, 2012

Law Firms


Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.