WACHOVIA RETIREMENT PLANS LAWSUIT

On July 25, 2008, employees of Wachovia filed a lawsuit on behalf of current and former employees of the company who invested in the Wachovia 401(k) Savings Plan between January 23, 2007 and the present. The lawsuit, which was filed in the U.S. District Court, Southern District of New York, alleges that Wachovia violated the Employee Retirement Income Security Act of 1974 ("ERISA").

Under ERISA, Wachovia employees can file a lawsuit if the Administrator of the Plan put employees' retirement savings at risk, thereby violating the Administrator's fiduciary duty to its employees. A fiduciary is the person who exercises discretion over the management of plan assets or exercises discretionary control over the administration of the plan. If a Plan Administrator imprudently invests employee retirement fund assets in the company's own stock, it may have breached its fiduciary duty.

At this point, several ERISA cases have been filed against Wachovia in the federal court in New York. Zimmerman Reed currently represents some of these employees. The employee/plaintiffs in these actions have now moved to consolidate their cases and have proposed a leadership structure to lead the case. The Keller Rohrback law firm (www.kellerrohrback.com) has petitioned to be the lead counsel in the case, but the Court has not yet issued its order designating lead plaintiff and lead counsel for the consolidated actions.

Once the preliminary matters of consolidation are discussed and deadlines established, the case will proceed.  If the employees are successful, they will obtain recovery on behalf of all plan participants and beneficiaries.

If you would like additional information about the lawsuit, or believe you have experienced a loss, please contact one of our experienced securities attorneys by clicking here.