New from Fidelity Investments: "A class-action lawsuit claiming breach of contract, fraud and theft of property has been filed relating to LandAmerica Financial Group Inc.'s (LFGRQ:$0.0800,$0.0050,6.67%) 1031 Exchange business. The suit, filed in U.S. Bankruptcy Court in Richmond, is on behalf of LandAmerica 1031 Exchange Services customers. Named in the suit are the Henrico County-based holding company, its exchange company and several executives, including former chairman and chief executive Theodore L. Chandler Jr., who stepped down Friday; Chief Financial Officer G. William Evans; and controller Christine R. Vlahcevic. A separate class-action suit was filed in U.S. District Court in the Southern District of California against Evans, exchange company executive Stephen Connor and SunTrust Banks Inc. That lawsuit alleges that the LandAmerica executives and SunTrust engaged in or allowed money from new customers to be used to pay off clients who had put money into the exchange company earlier. The class-action suit filed in bankruptcy court could be an attempt to give more weight to the claims of exchange customers. If the bankruptcy judge agrees that the class exists, it increases bargaining power by creating a larger number of claimants."
