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Wachovia Securities, LLC or Wachovia Capital Markets, LLC WB Securities Stock Fraud

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Company: Wachovia Securities, LLC or Wachovia Capital Markets, LLC
Ticker Symbol: WB
Class Period: May-13-08 to Jul-7-08
Date Filed: Oct-7-08
Lead Plaintiff Deadline: Dec-6-08
Court: Southern District of New York
Allegations:
A class action lawsuit was filed on Tuesday, October 7, 2008, in the United States District Court for the Southern District of New York on behalf of all persons and entities that were offered or sold Series T Preferred shares of Federal National Mortgage Association ("Fannie Mae" or the "Company") (NYSE: FNM-T) by Wachovia Securities, LLC or Wachovia Capital Markets, LLC (collectively, "Wachovia") during Fannie Mae's initial offering of those shares. The lawsuit seeks to pursue remedies under the Securities Act of 1933 (the "Securities Act"). The class action, Civil Action No. 08-CV-8551, is pending in the United States District Court for the Southern District of New York.

Fannie Mae is a government sponsored enterprise created by Congress with the mandate to provide liquidity and stability to the secondary mortgage market and to help make home ownership affordable for low- and middle-income citizens. On May 13, 2008, Fannie Mae offered to the public 89,000,000 shares of Series T Preferred stock. The stock was sold by various underwriters, including Wachovia.

The complaint alleges that the stock was sold to the public pursuant to an offering circular which was materially false and misleading. Specifically, the offering circular failed to warn investors that because of new accounting rules, there was a risk that Fannie Mae would not be able to meet certain minimum capital requirements imposed on it by its regulator, the Office of Federal Housing Enterprise Oversight ("OFHEO"). If Fannie Mae was not able to meet OFHEO's minimum capital requirements, its ability to carry on its normal business operations would be in serious jeopardy. When this fact was revealed to investors on July 7, 2008, the price of Fannie Mae Series T Preferred shares plummeted. The shares were originally offered to the public at $25.00 per share, and have dropped to as low as $2.00 per share.

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 Securities, LLC or Wachovia Capital Markets, LLC 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 Securities, LLC or Wachovia Capital Markets, LLC securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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