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Wachovia Securities, Inc. : First Union Securities Masters Investment Consulting Program Summary: According to a press release dated August 15, 2007, on July 20, 2007, the U.S. District Court for the Eastern District of Virginia found that plaintiffs' counsel in a securities fraud class action were liable for submitting false pleadings to the court and imposed Rule 11 sanctions upon the counsel.
According to the docket, on September 27, 2006, the Court entered the Order signed by U.S. District Judge Robert E. Payne. According to the Order: 1) 11/29/2006 at 9:30 a.m., a hearing shall be held to determine whether, to what extent, and in what way Steven G. Schulman, as Lead Counsel in this case, actually relied on other attorneys and, in each instance, on whom he relied, in submitting papers to the Court that resulted in three (3) violations of FRCivP 11 2) Steven Schulman shall appear at the hearing to give testimony and on 10/31/2006 he and Milberg Weiss Bershad & Schulman shall appear at the hearing to give testimony and on 10/31/2006 shall provide documents relevant to the inquiry in paragraph 1); if necessary, on 10/3/2006, counsel for the parties shall submit any briefs, to be a maximun of 5 (five) pages in length, double-spaced, addressing disputes that arise over production of the documents in paragraph (2)
Previously, on January 30, 2003, the Court entered the Order granting the appointment of lead plaintiff and selection of lead and liaison counsel. On February 7, 2003, the plaintiff filed an Amended Complaint, and the defendant Wachovia Securities responded by filing a motion to dismiss. On February 21, 2003, the Court entered the Order granting the motion to dismiss the Amended Complaint. On May 9, 2003, the plaintiff filed a Second Amended Complaint, and the defendants again responded by filing a motion to dismiss. On August 12, 2003, the Court entered the Memorandum Opinion and Order signed by Judge Robert E. Payne granting the first and second claim in the Second Amended Complaint, but denying the third claim. On August 29, 2003, the defendant Wachovia Securities filed a Counterclaim against plaintiff Patrick V. Morris. On September 26, 2003, the plaintiff filed a motion to certify the class, and on October 3, 2003, also filed a motion to dismiss the Counterclaim. On May 17, 2004, the defendant Wachovia Securities filed a motion for Summary Judgment. On July 28, 2004, the Court entered the Order denying the plaintiff's motion to certify the class. On August 2, 2004, the Court entered the Order granting the plaintiff's motion to dismiss the Counterclaim with prejudice. Also that day, the Court entered the Order granting the defendant Wachovia Securities’ motion for Summary Judgment, and the action was dismissed with prejudice. On August 11, 2004, the defendant filed a motion to Alter or Amend Judgment to Include Findings a motion by Wachovia Securities Impost Sanctions Under the PSLRA and Rule 11. On August 31, 2004, the plaintiff filed a motion for Sanctions against Wachovia Securities Corp. On January 28, 2005, the Court entered the Memorandum Opinion and Order denying all the pending motions. On February 28, 2005, defendant Wachovia Securities field a notice of appeal and on March 11, 2005, the plaintiff Patrick V. Morris filed a notice of cross-appeal. On May 17, 2006, the Court entered the Opinion from the Fourth Circuit Court of Appeals, affirming in part and vacating in part the judgment of the District Court. The case was remanded back to the District Court. On June 13, 2006, the U.S. Court of Appeals Judgment was entered.
The original complaint alleges that First Union Securities, Inc., later Wachovia Securities, Inc., failed to inform Masters Program investors of the material third-party compensation it received as a result of the investors' participation in the Masters Program. Specifically, the complaint alleges that First Union/Wachovia Securities, Inc., did not inform Masters Program investors that it:
(1) selected Masters Program investment advisers based, in part, upon the profits those advisers generated for First Union/Wachovia Securities, Inc.;
(2) received material third-party compensation as a result of its role as "middle-man" in the Masters Program; and
(3) received other significant material third-party compensation as a direct result of the investors' participation in the Masters Program.
The complaint alleges that due to its failure to disclose the material third- party compensation it received as a direct result of the investors' participation in the Masters Program First Union/Wachovia Securities, Inc., violated the federal securities laws and prevented the investors from comprehending the biased and self-interested nature of First Union/Wachovia Securities, Inc.'s role in the Masters Program.
The class constitutes those who enrolled in either the First Union Securities Masters Investment Consulting Program or the Wachovia Securities Masters Investment Consulting Program (collectively referred to herein as the "Masters Program") during the period indicated below.
INDUSTRY CLASSIFICATION:
SIC Code: 6282
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | Wachovia Securities, Inc. : |
| COMPANY/ISSUER TICKER: | WB |
| COMPANY WEBSITE: | http://www.wachovia.com/ |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Morris, et al. v. Wachovia Securities, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Type: | Date on the document: | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| Morris, et al. v. Wachovia Securities, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Amended Class Action Complaint For Violations Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 2/7/2003 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 02/02/2007 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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