Harbinger Capital Partners Offshore Manager LLC

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Wachovia Bank seeks to prevent lawsuits from Cayman hedge funds

Wachovia Bank is trying to prevent itself from being sued by several hedge funds, including four in the Cayman Islands, that bought claims from creditors of a bankrupt firm in order to try to collect on them.Wachovia has applied to a court in North Carolina for an injunction to enjoin the funds from prosecuting claims against the bank, arguing that such conduct violates “established prohibitions against assignment of tort claims, champerty and maintenance”.