Judge dismisses suits against Wachovia
A Manhattan federal judge has dismissed three shareholder lawsuits accusing Wachovia Corp. and its former executives of lying about the bank’s exposure to risky mortgage loans, which caused its near collapse, Reuters reported.
Wachovia agreed in October 2008 to be bought by Wells Fargo & Co. after suffering a run on deposits. “Bad judgment and poor management are not fraud, even when they lead to the demise of a once venerable financial institution,” U.S. District Judge Richard Sullivan wrote in a ruling.
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