By the Order and Final Judgment, dated February 17, 1998, U.S. District Judge Steven D. Merryday certified the action as a class action and approved the settlement. The action was dismissed with prejudice, without costs to any party, and all defendants were released from all claims. The case was closed. However, according to the docket we have posted, an appeal was filed before the 11th Circuit Court of Appeals. The case was reopened on March 10, 2003, where an order granted a disbursement of $118,885.12 from the class settlement fund to certain plaintiffs. The case was finally closed on July 10, 2003.
On or around June 12, 1996, Judge Steven D. Merryday, ordered to consolidate all 1996 cases with the already consolidated 1994 case. All future papers were filed in with case 94-CV-995.
The suit sought certification as a class-action on behalf of all the customers who bought the Dean Witter U.S. Government Securities Trust from NationsBank's securities subsidiaries between March 25, 1993 and Nov. 15, 1994.
According to the complaint, investors (primarily NationsBank customers) were tricked and misled by commission and quota-driven bankers and brokers into purchasing shares of the Dean Witter U.S. Government Securities Trust.
This lawsuit alleges that NationsBank failed to disclose the risks of the fund, and blurred the distinction between bank products and securities products by using bank-like terms to describe the fund and that brokers working out of NationsBank offices sold the fund without explaining the interest rate risks and market risks of the fund to bank customers, and were trained to dodge direct questions about deposit insurance.