Wachovia Sued Over Bond Fund Collapse

Law360, New York (August 5, 2008, 12:00 AM EDT) -- Investors in Wachovia Corp.'s Evergreen Ultra Short Opportunities Fund have filed a fraud suit against the bank, accusing Wachovia of incorrectly valuing the now-defunct fund in order to artificially inflate its share price.

In a suit filed on Monday in the U.S. District Court for the District of Massachusetts, two Evergreen investors alleged that Wachovia made false and misleading statements regarding Evergreen's pricing, which in turn inflated the value of the fund and eventually led to losses for shareholders.

The fund in question was “an open-end...
To view the full article, register now.
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.