NEW YORK, July 3, 2008 (PRIME NEWSWIRE) -- The law firms of Avelino & Associates, P.C. (http://www.avelinolaw.com) and Napoli Bern Ripka, LLP, announced today that the firms have commenced an investigation of Wachovia's (NYSE:WB) Evergreen Ultra-Short Opportunities Fund (EUBAX). 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 investors in the fund may recover the losses caused by the managers' omissions.
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 among the worst ultra short bond funds in 2008. Other poor performing funds are the Charles Schwab's YieldPlus Fund (Nasdaq:SWYPX) and the Schwab's YieldPlus Select Fund (Nasdaq:SWYSX) Both funds have lost over 35% as a result of heavy investments in subprime mortgages.
WACHOVIA EVERGREEN LAWSUITS
While there will certainly be Evergreen Ultra Short Opportunities Class Action Lawsuits filed, Avelino & Associates, P.C. recommends that any investors who lost over $10,000 will be better suited by pursuing an individual arbitration claim. Claims are being reviewed throughout the United States, and there are no fees or expenses unless a recovery is obtained.
Investors who purchased the Evergreen Ultra Short Fund can get more information by visiting http://www.avelinolaw.com. Investors can obtain a free legal consultation by contacting Vincent J. Imbesi at 1- (866) 732-2775, regardless of the amount of money lost (most law firms require a minimum loss of $50,000.)
Combined, the law firms of Avelino & Associates and Napoli Bern Ripka, have obtained millions of dollars for investors. Our attorneys have represented hundreds of investors in FINRA arbitrations. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.