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Wachovia Corporation WB Securities Stock Fraud

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Company: Wachovia Corporation
Ticker Symbol: WB
Class Period: Mar-19-03 to Feb-13-08
Date Filed: Sep-16-09
Lead Plaintiff Deadline: Nov-15-09
Court: Southern District of New York
Allegations:
A lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York against Wachovia Corporation (NYSE: WB) and its subsidiaries on behalf of all persons and entities who, between March 19, 2003 and February 13, 2008, purchased Auction Rate Securities (ARS) in any auction for which Wachovia Securities, LLC or A.G. Edwards & Sons, Inc. served as sole auction dealer, lead auction dealer, co-lead auction dealer, or joint lead auction dealer, and who were damaged thereby. Wachovia Securities and A.G. Edwards generally served as auction dealers for the ARS that they underwrote. Investors who continue to hold illiquid Wachovia-managed ARS or who sold those securities at a loss may be included in the litigation.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by engaging in a manipulative scheme to defraud purchasers of Wachovia-managed ARS. ARS are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic "auctions." ARS generally have long-term maturities or no maturity dates.

The Complaint alleges that throughout the class period, Wachovia Securities and A.G. Edwards engaged in deceptive and manipulative tactics directed at ARS investors to create the appearance of a functioning auction market. Such manipulative conduct included: (1) maintaining a policy of intervening in every auction for which Wachovia Securities and A.G. Edwards served as the sole or lead auction dealer, to create the appearance of stability in the ARS market, mask the inherent illiquidity of Wachovia-managed ARS, and prevent auction failures; (2) making false and misleading statements and incomplete disclosures about the liquidity of Wachovia-managed ARS and the role of each of the Defendants in propping up the ARS market; (3) routinely intervening in auctions to set the rates of interest or dividends paid on those securities and deprive investors of the information necessary to assess the risk and volatility of Wachovia-managed ARS; and (4) providing a par daily "liquidity" service to A.G. Edwards customers to conceal risk and encourage investors to purchase Wachovia-managed ARS.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Wachovia Corporation WB Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Wachovia Corporation securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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