October 19, 2011 Comments (0) Blog, Securities Fraud

Recovery of Evergreen Ultra Short Opportunities Fund Investment Losses

(Last Updated On: July 17, 2015)

Did you suffer losses due to your investment in an Evergreen Ultra Short Opportunities Fund? If you did, the attorneys of The White Law Group may be able to help you recover your investment losses through FINRA arbitration.

The Evergreen Ultra Short Opportunities Fund had four different classes: Class A (EUBAX), Class B (EUBBX), Class C (EUBCX), and Class I (EUBIX). The Fund was managed by Evergreen Investments which at the time was the investment management arm of Wachovia. Evergreen Investments has since been folded into Wells Fargo (after their merger with Wachovia) and the brand name has been dissolved.

The fund was in operation for several years with few issues, but a sharp decline of about 20% in the summer of 2008 uncovered significant risk in the funds underlying investments. According to Bloomberg.com, as of March 2008 “two thirds of Ultra-Short Opportunities assets were home-loan securities without guarantees from government-linked entities such as Fannie Mae or asset-backed securities that may be tied to subprime mortgages.”

Following the serious losses incurred, Evergreen Investments purportedly made the decision to liquidate and close the fund.  Investors in the fund were to receive a per share amount of $7.48, which, according to Bloomberg.com, was the “net asset value” as of June 18, 2008. The liquidation of the fund meant that many investors lost a significant amount of money in the fund during 2008 and were locked into those losses.

Based on The White Law Group’s investigation, it appears that Wachovia/Evergreen Investments may have misrepresented or understated the risk of the investments and also may not have adequately disclosed how concentrated the funds position was in sub-prime mortgages. According to documents related to a class action suit brought by Evergreen Ultra Short Opportunities Fund investors, the fund was represented to investors as “[providing] current income consistent with preservation of capital and low principal fluctuation.”

If it can be proved that your financial professional did not adequately describe the risks of the Evergreen Ultra Short Opportunity Fund to you, then you may have claim to recover your investment losses.

If you suffered losses as a result of your purchase of the Evergreen Ultra Short Opportunities Fund and would like to speak to a securities attorney about your potential to recover investment losses through FINRA arbitration please call our Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

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