December 18, 2012 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys' fees and expenses, and issued an order and judgment.
Settlement Fund: $25,000,000.00 in cash, plus interest earned on that amount commencing on May 7, 2012. Recovery will depend on the timing of purchases and any sales of shares of the Fund during the Class Period. Based on the information currently available to Lead Plaintiffs and the analysis performed by their damage consultants, it is estimated that if Class Members submit claims for 100% of the shares eligible for distribution under the Plan of Allocation, the estimated average distribution per share will be approximately $0.20 or 26% of estimated recoverable damages before deduction of Court-approved fees and expenses, including the cost of notifying members of the Class and settlement administration. Historically, actual claims rates are less than 100%, which result in higher distributions per share. A Class Member’s actual recovery will be a proportion of the Net Settlement Fund determined by that claimant’s Recognized Claim as compared to the total Recognized Claims of all Class Members who submit valid Claim Information Forms (CIF).

Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery.

If the Case Had Not Settled: Continuing with the case could have resulted in loss at trial or on appeal. The two sides vigorously disagree on both liability and the amount of money that could have been won if Lead Plaintiffs prevailed at trial. The parties disagree about: (1) the amount of alleged damages, if any, that could be recovered at trial; (2) the other causes of the losses to the Fund during the Class Period; (3) the proper measure of alleged damages; (4) the extent that various facts alleged by the Lead Plaintiffs were materially false and misleading; (5) the extent that the various facts alleged by the Lead Plaintiffs influenced the Net Asset Value of the Fund during the Class Period; and (6) whether the facts alleged were material, false, misleading or otherwise actionable under the securities laws.

December 5, 2012 - The court held a final settlement hearing.

July 24, 2012 - The court preliminarily approved the settlement.

June 29, 2012 - Parties filed a stipulation of settlement.

March 31, 2010 - The court denied the defendants' motion to dismiss.

July 15, 2009 - Defendants filed a motion to dismiss.

May 7, 2009 - The lead plaintiffs and lead counsel were appointed.

April 30, 2009 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased Evergreen Ultra Short Opportunities Funds (formerly NASDAQ: EUBAX, EUBBX, EUBCX, EUBIX) between October 28, 2005 and June 18, 2008. The lead plaintiffs alleges that the defendants violated the Securities Act of 1933 by issuing false and misleading statements between October 28, 2005 and June 23, 2008.

January 15, 2009 - All cases were consolidated.

August 22, 2008 - Lead plaintiff motions were filed.

June 23, 2008 -- An investor in shares of Evergreen Investment Management Company (NASDAQ: EUBAX, EUBBX, EUBCX, EUBIX) filed a lawsuit in the U.S. District Court for the District of Massachusetts against Evergreen Investment Management Company over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 23, 2005 and June 23, 2008.

According to the complaint the plaintiffs charge Evergreen Investment Management Company and certain of its officers and directors with violations of the Securities Act of 1933. A class action was filed on behalf of those who purchased or otherwise acquired shares of all classes of the Evergreen Ultra Short Opportunities Fund (NASDAQ: EUBAX, EUBBX, EUBCX, EUBIX) within three years of the filing of the lawsuit. Prior to August 1, 2005, the Fund was known as the Evergreen Ultra Short Bond Fund.

The complaint alleges that on or about May 29, 2003, the defendants began offering shares of the Fund pursuant to an initial registration statement filed with the SEC as a Form 485BPOS (the Registration Statement). The complaint charges that defendants solicited investors to purchase shares of the Fund by stating that the Fund’s investment objective was to: “provide current income consistent with preservation of capital and low principal fluctuation.” The complaint alleges that these statements were materially false and misleading because Evergreen Investment Management Company employed an undisclosed high-risk strategy that led to realized losses of approximately 18 percent and seeks to recover damages on behalf of the Class.

Beginning on or about June 9, 2008, Evergreen Ultra Short Opportunities Fund's (NASDAQ: EUBAX, EUBBX, EUBCX, EUBIX) per share net asset values declined precipitously across all share classes. On June 19, 2008 the fund reported that it was liquidating, and that its net assets were only $403 million, far lower than the $731.4 million net asset value reported by the fund on March 31, 2008.

Evergreen Investment Management Company serves as the investment advisor to a group of mutual funds marketed under the Evergreen Investment Management Company name. Evergreen Investments is the brand name under which Wachovia Corporation (formerly NYSE:WB) conducts its investment management business.