BOSTON (Reuters) -- Investors sued U.S. bank Wachovia Corp (WB.N) and its affiliates on Monday, charging them with causing losses through the incorrect valuation of a now-defunct bond fund's shares and making risky investments in the fund.

The lawsuit against Wachovia, two of its affiliates and two group executives follow lawsuits against other financial firms, including Fidelity Investments, State Street Corp (STT.N) and Charles Schwab Corp (SCHW.O), over bond fund losses.
Investors Albert Krantzberg and Irene Krantzberg claimed in the suit filed in a federal court in Boston that the fourth- largest U.S. bank and the other defendants ""incorrectly"" valued and sold the shares of the Evergreen Ultra Short Opportunities Fund ""at an artificially inflated price"" between August 2007 and June 2008.
The suit said the plaintiffs were also hurt as investors were allowed by the defendants to sell their holdings at ""too high a price.""
""As shareholders redeemed their shares, the selling shareholders were overpaid, depleting the fund's reserves and harming the plaintiffs,"" the investors said in the complaint.
""Plaintiffs purchased at an inflated price and were also damaged by the fund's failure to properly redeem the shares of the fund investors at a price representing the correct net asset value."" Wachovia and Evergreen Investments, the money management arm of the bank, declined to comment on the charges.