Wednesday, October 7, 2009

Suit: Thompson gave stock advice on hunting trip

Wachovia CEO Ken Thompson told Cameron Harris "his stock would be okay" on a hunting trip in February 2008, according to a lawsuit filed by Harris and his relatives.

During the trip Harris, a Charlotte businessman and shareholder, was so worried about his stock in the weakening bank that he told the CEO he was thinking of selling it, the suit says.

The suit gives this account of the conversation:

"On or about February 18, 2008, Defendant Thompson visited with Plaintiffs Cameron Harris and Gary Harris during a hunting trip. In the preceding four months, the price of Wachovia's stock had declined more than $12 per share. During the visit, Mr. Cameron Harris expressed his concern to Defendant Thompson about the housing market and the decline in Wachovia's share price. Mr. Harris told Thompson that he was considering selling his stock.

"Defendant Thompson responded that at the current price Wachovia's stock was a good buy and that he expected its loan portfolio and business to do well that year. Thompson said that his stock would be okay and that Wachovia was not planning on cuting its dividend."

For the full suit, click on the following links. (We've broken the suit into parts due to its length):

- Rick Rothacker, Christina Rexrode, Doug Miller

1 comment:

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