We previously reported on a Wachovia shareholder's attempt to enjoin the Wells Fargo-Wachovia merger (please click here to view previous post). On December 5, 2008, Judge Albert Diaz of the North Carolina Business Court denied the Wachovia shareholder's request for a preliminary injunction. Judge Diaz found no basis for reversing the business judgment of Wachovia’s board and stated that “[t]he stark reality is that the [Wachovia] board recognized that Wachovia was on the brink of failure because of an unprecedented financial tsunami...[and] I am satisfied that the [Wachovia] board’s approval of the merger agreement was an informed decision, made in good faith, and with an honest belief that the action was in the best interests of Wachovia Corporation and its shareholders, given the circumstances then facing the board.”

Please click here to view the Order and Opinion.