Breaking News: Wachovia Litigation on Hold, at Least Until Wednesday

[WSJ_law_blog]

This just in: The three parties involved in the Wachovia litigation — Wachovia, Citigroup and Wells Fargo — have agreed to halt all litigation activity until noon Wednesday. The news was announced a few minutes ago in press releases issued by each company. The release reads:

Wachovia, Citigroup, and Wells Fargo have agreed to:

1) a standstill of all formal litigation activity effective immediately;
2) cease any formal discovery activities, and
3) cooperate in good faith to agree among themselves to secure orders where necessary in all applicable cases in all jurisdictions tolling any schedules for the filing of litigation papers or court appearances or any other formal litigation deadlines, with the goal of preserving the status quo during the litigation standstill period.

This standstill agreement will terminate at noon on Wednesday, Oct. 8, 2008, unless otherwise extended.

The companies did not give a reason for the action but a statement from Citigroup said, “We are pleased to participate with the Federal Reserve Board in a fair-minded, good faith process to achieve a prompt and successful outcome.”