Seeger Weiss was appointed by the United States District Court of the Southern District of New York to serve as Liaison Counsel for the case against Wachovia on behalf of investors. As liaison counsel, Seeger Weiss attorneys helped to direct negotiations for the final settlement between the company and many clients in which the company agreed to repurchase a total of approximately $22 billion of ARS nationally over.
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Auction rate securities (ARS) were touted as highly liquid and very safe for short-term investments that could be purchased with excess cash by corporations, financial funds, individuals, and charitable organizations. However, during 2007 and 2008, many ARS auctions failed, and holders were unable to sell, leading to the collapse of the market.
Wachovia Corp. was one of many defendants that allegedly deceived investors about the risk and time period associated with auction rate securities, ultimately causing a collapse of the market. Many investors were deceived about these investments and suffered serious financial harm.