Wamco Sued Over Cherry-Picking After Former Exec’s Fraud Charges

Western Asset Management Co. LLC and its former co-chief investment officer Ken Leech perpetuated a cherry-picking scheme that caused investors in disfavored strategies to be saddled with over $600 million worth of first-day losses, a trust fund’s proposed class action said.

Leech and Wamco favored the bond giant’s Western Asset Macro Opportunities strategy that had higher annual and performance fees at the expense of strategies with lower ones, including the Western Asset US Core and Western Asset Core Plus strategies, said the complaint filed in the US District Court for the Western District of Pennsylvania on July 3.

“Franklin Resources ...