Investors sued Wachovia Corp. and its affiliates on Monday, charging them with causing losses by incorrectly valuing shares of a now-defunct bond fund and making risky investments in the fund.
Investors Albert Krantzberg and Irene Krantzberg claimed in the suit filed in a federal court in Boston that Wachovia and its affiliates "incorrectly" valued and sold the shares of the Evergreen Ultra Short Opportunities Fund "at an artificially inflated price" between August 2007 and June 2008.
The suit, which seeks class-action status, names Wachovia and Evergreen Investments, the money management arm of the bank, as well as Evergreen Fixed Income Trust, Evergreen Distributor, Dennis Ferro, chief executive of Evergreen Investments, and Kasey Phillips, principal financial officer of the trust.
Wachovia and Evergreen Investments declined to comment on the charges.
The fund, which invested in ABS and MBS, as well as other short-duration instruments, was liquidated in June because its net asset value had dropped about 20% in 2008. Evergreen announced in June that the fund's shareholders will be paid $7.48 per share cash.