Case Page

 

Case Status:    DISMISSED    
On or around 01/23/2006 (Other)

Filing Date: June 08, 1999

According to a press release dated March 1, 2006, a long-running shareholder lawsuit against Wachovia Corp. was dismissed in January in the U.S. District Court for the Western District of North Carolina, the Charlotte bank said in its annual 10-K filing Tuesday. The class action, filed in 1999 against predecessor First Union Corp., initially alleged violations of federal securities law involving the 1998 acquisitions of CoreStates Financial Corp. and The Money Store Inc. An amended complaint later only alleged problems with First Union's Money Store acquisition. A Wachovia spokeswoman said the company could not comment beyond the filing. In the filing, Wachovia also said it reached an undisclosed settlement in February with Bluebird Partners LP over a long-running dispute over the handling of collateral in Continental Airlines' 1990 bankruptcy filing by a Wachovia predecessor. The Supreme Court of the State of New York in 2005 last year entered a $32.9 million judgment against Wachovia, but both parties filed appeals.

As summarized by the Company's FORM 10-K for the fiscal year ended December 31, 2002, in January 2001, the U.S. District Court for the Western District of North Carolina granted Wachovia's motion to dismiss the litigation for failure to state a claim upon which relief could be granted. Although the plaintiffs did not appeal this ruling, they sought, and received permission to file an amended complaint. In August 2001, plaintiffs filed an amended complaint that abandoned their previous allegations concerning the CoreStates Financial Corp merger and primarily raised new allegations of irregularities at The Money Store, Inc. (TMSI) prior to its acquisition by Legacy First Union. In October 2001, Wachovia filed a motion to dismiss the securities litigation consolidated in the U.S. District Court for the Western District of North Carolina. In September 2002, the court granted the motion in part, limiting any new complaint to claims regarding alleged misstatements or omissions plead in earlier complaints. The plaintiffs filed a third consolidated and amended complaint in October 2002, purportedly on behalf of a class of purchasers of our common stock during the period from March 4, 1998 to May 24, 1999. The complaint alleges, among other things, that First Union disregarded problems at TMSI and did not write down goodwill from the TMSI acquisition soon enough. Defendants filed a motion to strike portions of this complaint.

A number of purported class actions were filed in June through August 1999 against the Company in the United States District Courts for the Western District of North Carolina and for the Eastern District of Pennsylvania. These actions named Wachovia and certain of its executive officers as defendants and were purported to be on behalf of persons who purchased shares of its common stock from August 14, 1998, through May 24, 1999. These actions were consolidated into one case in the U.S. District Court for the Western District of North Carolina in October 1999. These complaints alleged various violations of federal securities law, including violations of Section 10(b) of the Exchange Act, and that the defendants made materially misleading statements and/or material omissions which artificially inflated prices for our common stock. The complaints alleged that management failed to disclose integration problems in the CoreStates Financial Corp merger and misstated the value of our interest in certain mortgage-backed securities of The Money Store, Inc. ('TMSI') acquired by Legacy First Union on June 30, 1998. Plaintiffs sought a judgment awarding damages and other relief.

The first complaint filed specifically alleges that First Union and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. According to the complaint, during the Class Period, defendants issued a series of materially false and misleading public statements about First Union's operations, its operating results and integration of operations with the Money Store Inc. and CoreStates Financial Corporation. The complaint further alleges that the issuance of these false and misleading statements caused the price of First Union's common stock to be artificially inflated during the Class Period.

COMPANY INFORMATION:

Sector: Financial
Industry: Money Center Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FTU
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. North Carolina
DOCKET #: 99-CV-00237
JUDGE: Magistrate Judge H. B. McKnight
DATE FILED: 06/08/1999
CLASS PERIOD START: 08/14/1998
CLASS PERIOD END: 05/24/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  4. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  5. Spector Roseman & Kodroff (San Diego)
    1818 Market Street, Suite 2500, Spector Roseman & Kodroff (San Diego), PA 19103
    215.496.0300 215.496.6611 ·
No Document Title Filing Date
COURT: W.D. North Carolina
DOCKET #: 99-CV-00237
JUDGE: Magistrate Judge H. B. McKnight
DATE FILED: 10/15/2002
CLASS PERIOD START: 05/04/1998
CLASS PERIOD END: 05/24/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  3. Schoengold & Sporn PC (New York)
    233 Broadway 39Th Floor, Schoengold & Sporn PC (New York), NY 10279
    212.964.0046 ·
No Document Title Filing Date
No Document Title Filing Date