Wachovia Shareholders Go 0-for-2 (Million)

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Shortly after WFC picked up the ball Citi dropped and scooped up Wachovia, shareholder Irving Ehrenhaus sued both banks on the grounds Wells didn't offer a fair price for the quickly collapsing bank. Other Wachovia shareholders undoubtedly thought they would have a shot at a better deal through the suit. Based on the amount of time and effort spent in this battle, you'd think news of a settlement would be good news for Team WB. But shareholders are now up in arms again after learning the terms of settlement would award Ehrenhaus' lawyers with about $2 million while they would be treated to a slightly lesser amount.

In that proposal, which Judge Diaz will consider Aug. 20, shareholders of the former Wachovia would not receive any monetary compensation. But Wells Fargo would pay $1.975 million to Ehrenhaus' lawyers, led by a New York firm called Wolf Popper, "for their efforts in achieving the benefits of the settlement." ...The proposed settlement also says that other former Wachovia shareholders would be barred from filing any future lawsuits related to the deal

Lady Justice isn't blind. She's just doubled over in laughter at this one.

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