In today's quarterly filing with the Securities and Exchange Commission, Wachovia detailed several lawsuits filed against it over its purchase of Golden West Financial Corp. The mortgage lender, which Wachovia bought at the height of the housing boom in 2006, has since been blamed for much of the bank's current losses. The lawsuits, filed either by shareholders or employees, claim that Wachovia made misleading disclosures about Golden West's portfolio and its own exposure to mortgage-backed securities.
Seven class-action lawsuits claim that Wachovia should not have permitted its common stock to remain an investment option in its employee savings plan. The suits say that misleading disclosure made Wachovia's stock “a risky and imprudent investment for employee retirement accounts,” the bank said.
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The bank said the suits are in preliminary stages, and that it intends to “defend vigorously” each case.