East West Bancorp, Wachovia Unit Settle
East West Bancorp Inc. settled a suit that claimed a unit of Wachovia Corp. broke a promise to provide analyst coverage for the company’s stock in exchange for managing a $10-million securities offering.
Terms of the agreement are confidential, said Doug Krause, East West’s general counsel.
Los Angeles Superior Court Judge Alban Niles dismissed the suit after notice of the private settlement.
The lawsuit was initially filed against First Union Corp., which acquired Wachovia last year.
Charlotte, N.C.-based Wachovia had denied the allegations. A spokesman declined to comment beyond a statement that Wachovia Securities has “clear policies and procedures in place to ensure the integrity and independence of our equity research.”
Shares of San Marino-based East West rose 28 cents to $37 on Nasdaq, while Wachovia rose 80 cents to $35.60 on the NYSE.
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