Former Wachovia shareholders are angry with a proposed settlement over the bank’s merger with Wells Fargo and have argued their case before a state judge. A North Carolina judge held a hearing Thursday in Charlotte on the proposed settlement of a class-action lawsuit on behalf of Wachovia shareholders. Several shareholders recently objected to the settlement. They note it doesn’t pay them any damages. It also releases Wells Fargo from similar claims in the future and awards the attorneys who brought the suit $1.97 million in fees and expenses, said the Minneapolis/St. Paul Business Journal. Members of the group asked the judge to either let them opt out of the suit or to throw out the proposed settlement. “How is it fair for the shareholders to get nothing?” Norwood Robinson, a former shareholder, asked the judge. “The shareholders get nothing while the lawyers get paid. I’m embarrassed by that.” Robinson said instead of the settlement, he’d like to proceed to a trial and have more time to uncover any possible wrongdoing by Wachovia’s management before and during the merger. Others asked the judge to let them opt out of the suit and be free to pursue other actions. Attorneys for Wells-Wachovia and the original plaintiff, New York shareholder Irving Ehrenhaus, argued there are no damages to recover because Wachovia accepted the best deal available to shareholders last October, when the sale was announced. Judge Albert Diaz will now consider the arguments before deciding whether to approve the settlement.
Wachovia Shareholders Complain About Wells Fargo Merger Deal
Angry former Wachovia shareholders have brought their case before a federal judge, unhappy with the settlement after the Wells Fargo-Wachovia merger.
August 21, 2009
Is this justice? I have been robbed by Wells Fargo and I do not appreciate this at all. I am not a big shareholder, but it was my life savings when I bought the stock. This is just a for instance of how I was robbed. On September 17, 2007 I received a dividend check for $291.20, I had 455 shares. (By the way this was down by about $200 from previous years). Now I get dividend checks for $4.50. That’s right: four dollars and 50 cents, and I now only have 90 shares, thanks to the merger. Is this justice? Again: Heck no. Why take advantage of the poor people to line the pockets of the wealthy? Is this the American way? God, I sure hope not.