Tuesday, July 7, 2009

Everbank Class Action Lawsuit

According to a court document filed by Everbank in response to a class action lawsuit initiated in California, a total of 225 investors lost $4,007,662.81 as a result of Everbank's forced closing of their Icelandic Krona denominated "CDs". That averages out to about $18,000 per account.
Everbank Lawsuit Info

2 comments:

Zeya Irika's Dad said...

I have yet to go through the class action documents in detail, but I remain convinced that Everbank failed to disclose its modus operandi for investing in ISK to the customers (please point out to me, anyone, where were customers even told that the $$ were being used to buy ISK currency contracts instead of actual ISK CDs?!). Eventually, Everbank dumped its losses on its customers, after taking a nice chunk of currency conversion margins.

Christian Guy said...

http://www.everbanklawsuit.com/CaseNotes2.html

Frank Trotter's declaration to the court:
"12. Based on Vathana's loss calculation methodology, the alleged loss for all EverBank customers who purchased a WorldCurrency CD and who has had their CD converted from the original foreign currency of the CD to United States dollars at any point in the last four years totals $49,183,666.92.

13. This calculation described in Paragraph 12 takes into account all EverBank customers who had a WorldCurrency CD converted to United States dollars, regardless if that customer gained or lost money. If only those customers who suffered an actual loss in their investment are considered, then the alleged loss increases to $78,634,690.64."