Bloomberg reported Wells Fargo’s Wachovia Capital Markets unit and BDO Seidman settled lawsuits over their roles in the collapse of Le-Nature’s for $130 million.
U.S. Bankruptcy Judge Thomas P. Agresti approved one piece of the settlement on September 30 at a hearing in Pittsburgh. Under that deal, Wells Fargo and BDO would pay $50 million to a trustee for creditors of Le-Nature’s, whose chief executive officer pleaded guilty to fraud in June.
A group of Le-Nature’s lenders will receive $56 million and the California Public Employees ‘ Retirement System will receive $24 million under another part of the settlement, according to court documents filed in the Le-Nature’s bankruptcy case in Pittsburgh. The lenders and CALPERS sued Wachovia and auditor BDO Seidman in New York state court.
To read the entire Bloomberg story, click here.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!
No tags available