SAN FRANCISCO (CN) – Wachovia did not notify Asia Pulp & Paper shareholders they were entitled to reimbursement from a securities class-action settlement, stockholders say in a federal class action.
Asia Pulp & Paper issued misleading press releases and financial statements to drive up the price of its stock, and Wachovia, as nominee purchaser, “failed to give notice to the beneficial owners … as ordered by the District Court in its Order preliminarily approving the class settlement,” according to the complaint. “This failure resulted in the beneficial owners losing any chance of recovery under the settlement agreement.”
Wells Fargo and Wachovia and Wells Fargo affiliates also are named as defendants.
The class demands restitution and damages for negligence. They are represented by Brian Kabateck with Kabateck, Brown and Kellner of Los Angeles.