Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

LBBW Luxemburg Sues Wells Fargo, Wachovia Over Securities

Oct. 1 (Bloomberg) -- LBBW Luxemburg SA sued Wells Fargo & Co. and its Wachovia Corp. unit over $40 million in collateralized debt obligation investments.

The lawsuit, filed Sept. 28 in federal court in New York, seeks to recover the $40 million, according to the complaint. The claims are based on a 2006 transaction in which Wells Fargo sold LBBW what it claimed were “highly-rated” securities collateralized by residential mortgages, according to a statement from lawyers representing LBBW. The securities defaulted within a year, according to the statement.

“Wells Fargo had determined that the securities were not worth the purchase price and were riskier than promised,” lawyers for LBBW said in the statement.

Elise Wilkinson, a spokeswoman for San Francisco-based Wells Fargo, didn’t immediately return a call seeking comment on the lawsuit.

The case is LBBW Luxemburg S.A. v. Wells Fargo Securities LLC, 12-cv-7311, U.S. District Court, Southern District of New York.

To contact the reporters on this story: Joel Rosenblatt in San Francisco at; Bob Van Voris in New York at

To contact the editor responsible for this story: Michael Hytha at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.