Case Page

 

Case Status:    DISMISSED    
On or around 07/10/2009 (Other)

Filing Date: March 06, 2009

According to the notice of removal dated March 06, 2009, at all relevant times herein, Wachovia was one of the nation's largest financial service providers, servicing retail, brokerage and corporate customers. The Company portrayed itself as a conservative mortgage lender that did not participate in the high-risk lending activities engaged in by its competitors. At the height of the housing boom in 2006, Wachovia acquired mortgage lender Golden West in a move that the Company assured investors would solidify Wachovia's position as a leading mortgage lender without changing the Company's commitment to originating high-credit-quality mortgages.

In truth, Golden West was a high-risk subprime lender whose flagship pay option adjustable-rate mortgage loans (known as "Option ARMs" or "Pick-A-Pay" loans) were among the most toxic loans being peddled to borrowers, and through its acquisition of Golden West, Wachovia acquired a portfolio of more than $120 billion in Pick-A-Pay loans. Owing to the risky nature of the Pick-A-Pay loans, and the failure of Golden West and Wachovia to properly underwrite the loans, the loans were inadequately collateralized and became delinquent and defaulted at very high rates. As a result, the value of Wachovia's loan portfolio was materially overstated. In addition to its portfolio of Pick-A-Pay loans, Wachovia's balance sheet carried billions of dollars in other subprime assets, included mortgage-backed securities ("MBS"), residential mortgage-backed securities ("RMBS"), asset backed securities ("ABS") and collateralized debt obligations ("CDOs"), which were similarly overvalued.

On June 22, 2009, the Court issued two orders. The first was an order instructing that all future filings in any reassigned case were to be related to 09-CV-00998. The second order transferred the case pursuant To 28 U.S.C. §1404(a).

COMPANY INFORMATION:

Sector: Financial
Industry: Regional Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
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: N.D. California
DOCKET #: 09-CV-00999
JUDGE: Hon. Ronald M. Whyte
DATE FILED: 03/06/2009
CLASS PERIOD START: 07/31/2006
CLASS PERIOD END: 04/25/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barroway Topaz Kessler Meltzer & Check, LLP (Walnut Creek)
    2125 Oak Grove Road, Suite 120, Barroway Topaz Kessler Meltzer & Check, LLP (Walnut Creek), CA 94598
    925.945.0770 925.945.0770 · info@btkmc.com
  2. Bernstein Litowitz Berger & Grossmann LLP (San Diego)
    12481 High Bluff Drive, Suite 300, Bernstein Litowitz Berger & Grossmann LLP (San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  3. Klausner & Kaufmann, P.A.
    10059 N.W. 1st Court, Klausner & Kaufmann, P.A., FL 33324
    954.916.1202 954.916.1202 ·
No Document Title Filing Date