Wachovia Corp. ERISA Litigation
On November 3, 2011, the Honorable Martin Reidinger granted the amended final approval of the Class Action Settlement Agreement (“Settlement Agreement”). The Settlement is now final. The Plan of Allocation was implemented on December 12, 2011.
The Consolidated Complaint in the ERISA litigation was filed in the United States District Court Western District of North Carolina (“District Court”) on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of the Wachovia Savings Plan and/or the A.G. Edwards, Inc. Retirement and Profit Sharing Plan (collectively, the “Plans”).
Plaintiffs alleged that during the Class Period Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
• failing to prudently and loyally manage the Plans’ investment in Wachovia stock
• failing to properly monitor the performance of their fiduciary appointees and remove and replace those whose performance was inadequate
• failing to disclose necessary information to co-fiduciaries
• failing to provide complete and accurate information to the Class regarding the soundness of Wachovia stock and the prudence of investing and holding retirement contributions in Wachovia equity
• failing to prevent breaches by other fiduciaries of their duties of prudent and loyal management, complete and accurate communications, and adequate monitoring
• and knowingly participating in breaches.
The Settlement provided for a payment of $12.35 million, net of expenses described in the Settlement Agreement, to the Plans for the benefit of the following Settlement Class:
All persons other than Defendants who were participants in or beneficiaries of the Wachovia Savings Plan at any time between May 8, 2006 and December 31, 2008 and whose Plan account included units of investment in Wachovia Corporation common stock and/or participants in or beneficiaries of the A.G. Edwards, Inc. Retirement and Profit Sharing Plan at any time between October 1, 2007 and December 31, 2008 and whose Plan account included units of investment in Wachovia Corporation common stock.