PRESS RELEASE
Published on August 14, 1997
FOR IMMEDIATE RELEASE
August 1, 1997 -- NationsBank today announced that it has settled claims
brought by certain customers who bought non-depository investments from
NationsSecurities and its predecessors. The specific allegations focused
on events during 1993 and 1994. At that time, NationsSecurities was a
joint venture between NationsBank and Dean Witter. This comprehensive
agreement resolves all customer class-action claims against
NationsSecurities.
"We vigorously deny the allegations in the various suits this agreement
settles. We chose to resolve this matter in a way that best serves our
customers," said John W. Munce, the NationsBank executive presently
responsible for consumer investing. "Protracted litigation is a
distraction from our real business. We are concentrating fully on our
highest priority -- serving the investment needs of our customers,"
Munce added.
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Customers who purchased investment products will participate in a $29
million class action settlement, less up to $10 million in plaintiffs'
attorneys fees. Plaintiffs' attorneys have determined the formula by
which the funds are to be distributed to customers, subject to court
approval.
The plaintiffs in various suits alleged, in part, that they did not
understand the possible effects of changing market conditions on
investments. They also alleged that they believed that stocks, bonds and
mutual funds were guaranteed by the government or the bank against loss.
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Media Contact: Ann Anderson (704) 386-3100