Evergreen Ultra Short Opportunities Fund Lawsuit: Cases are being reviewed

By Harvey Kirk
Posted June 23, 2008

ADD YOUR COMMENTS 1

Wachovia’s Evergreen Ultra-Short Opportunities Fund has dropped 20% this year as a result of heavy investments in risky mortgage-backed securities. Managers of the mutual fund failed to disclose the full extent of the risks investors were exposed to, and those who lost over $10,000 may be able to recover their investment losses through an Evergreen Ultra Short Fund lawsuit.

Evergreen Investments is the money-management arm of Wachovia, the fourth largest bank in the United States. Last week, the fund manager indicated that the bank plans to liquidate the Evergreen Ultra-Short Opportunities Fund (EUBAX). Investors will receive $7.48 per share, which will be a substantial loss for most investors, who were told that this bond fund was a relatively conservative investment.

Through verbal statements and written materials, false and misleading statements were made about the true risk level of Evergreen Ultra Short Opportunities Fund. Investors were told that the fund was designed to provide income while preserving the capital investment. Despite indications that there would be low principal fluctuations, the fund lost 20% over a period of 16 days as a result of a decision to invest approximately 70% of the fund’s assets in subprime mortgage securities.

Wachovia’s Evergreen Ultra Short Opportunities Fund is rated as one of the two worst ultra short bond funds in 2008. The other is Schwab YieldPlus Fund, which has lost over 35% as a result of heavy investments in subprime mortgages. The lawyers at Saiontz & Kirk, P.A. are also investigating potential Schwab YieldPlus lawsuits for investors who lost money. Both Schwab YieldPlus and Evergreen Ultra Short Opportunities carried substantially more risk than was disclosed to investors. Other bond funds in the same category, which were exposed to the same market conditions, have only suffered losses of approximately 2%.

WACHOVIA EVERGREEN LAWSUITS

While there will certainly be Evergreen Ultra Short Opportunities Class Action Lawsuits filed, the financial fraud lawyers at Saiontz & Kirk, P.A. recommend that any investors who lost over $10,000 will be better suited by pursuing an individual arbitration claim. Wachovia Evergreen lawsuits are being reviewed throughout the United States, and there are no fees or expenses unless a recovery is obtained.

If you, a friend or family member have suffered losses off of the invested principal which exceeds $10,000, request a free consultation and claim evaluation.