In what’s being hailed as among the largest securities class action recoveries, a U.S. district court ordered Wachovia Corp. to pay $590 million for losses incurred through the purchase of the firm’s bonds and securities.
The U.S. District Court for the Southern District of New York ordered the payment of the money to the Orange County (Calif.) Employees’ Retirement System, the Louisiana Sheriffs’ Pension and Relief Fund, and the Southeastern Pennsylvania Transportation Authority for losses on purchases made between July 31, 2006, and May 29, 2008.
KPMG, Wachovia’s auditor, was ordered to pay an additional $37 million, bringing the total amount in the case to $627 million—a settlement amount that the plaintiffs’ lawyers in the case say is the largest ever in a class action case asserting only claims under the Securities Act of 1933.
Both settlements must be reviewed and approved by Judge Richard J. Sullivan of the district court after formal notice is provided to plaintiffs in the class action suit.