Wells Fargo and another law suit
29 June 2010 Sarasota
Image: Shutterstock
A USD40 million lawsuit has been filed by Sarasota County against Wells Fargo Bank, N.A. alleging improper investment advice with regard to the county's securities lending portfolio prior to the market crash in 2008. The case number is 2010 CA 006579NC.
Sarasota attorney Drew Clayton has been retained to prosecute the case on behalf of the county's clerk of court and county comptroller, Karen Rushing. In her capacity as clerk of court and county comptroller, Ms. Rushing serves as the county's top financial officer.
According to the lawsuit, which was filed in the circuit court in Sarasota County this week, Wachovia Bank failed to follow the county's conservative investment policies when it placed USD40 million worth of Lehman Brothers notes and another USD40 million of mortgage-related securities in the county's portfolio. Lehman Brothers went bankrupt in September, 2008. The other two securities, issued by Altius III Funding, Ltd. and Option One Mortgage lost a substantial amount of their value at that time as well. Wells Fargo has been named as a defendant because it acquired Wachovia Bank at the end of 2008 and became responsible for its obligations.
Sarasota County is not the first governmental agency to file a suit of this nature as a result of Wachovia's investment advice. A similar lawsuit was filed by the Charlotte-Mecklenburg Hospital Authority in North Carolina state court in December, 2008.
The Clayton Law Firm, P.A. ("Clayton Law") was established in 1996 by W. Andrew "Drew" Clayton, Jr. in Sarasota, Florida for the purpose of concentrating its practice in the representation of aggrieved investors, resolving business disputes, and periodically engaging in probate and trust-related litigation. Clayton Law is a partner in a partnership of professional associations known as "Johnson, Browning & Clayton."
Sarasota attorney Drew Clayton has been retained to prosecute the case on behalf of the county's clerk of court and county comptroller, Karen Rushing. In her capacity as clerk of court and county comptroller, Ms. Rushing serves as the county's top financial officer.
According to the lawsuit, which was filed in the circuit court in Sarasota County this week, Wachovia Bank failed to follow the county's conservative investment policies when it placed USD40 million worth of Lehman Brothers notes and another USD40 million of mortgage-related securities in the county's portfolio. Lehman Brothers went bankrupt in September, 2008. The other two securities, issued by Altius III Funding, Ltd. and Option One Mortgage lost a substantial amount of their value at that time as well. Wells Fargo has been named as a defendant because it acquired Wachovia Bank at the end of 2008 and became responsible for its obligations.
Sarasota County is not the first governmental agency to file a suit of this nature as a result of Wachovia's investment advice. A similar lawsuit was filed by the Charlotte-Mecklenburg Hospital Authority in North Carolina state court in December, 2008.
The Clayton Law Firm, P.A. ("Clayton Law") was established in 1996 by W. Andrew "Drew" Clayton, Jr. in Sarasota, Florida for the purpose of concentrating its practice in the representation of aggrieved investors, resolving business disputes, and periodically engaging in probate and trust-related litigation. Clayton Law is a partner in a partnership of professional associations known as "Johnson, Browning & Clayton."
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