Welcome to the Washington Mutual, Inc. Securities Litigation Website
Plaintiffs achieved three settlements with defendants in this securities class action litigation in 2011 totaling $208.5 million: (i) a $105 million settlement with certain former officers and directors of Washington Mutual, Inc. (“WMI”) and WMI; (ii) an $85 million settlement with certain underwriters of WMI’s securities offerings; and (iii) an $18.5 million with Deloitte & Touche, WMI’s auditor. The Court approved those settlements in November 2011.
On October 25, 2013, pursuant to the Order Approving Distribution Plan (the “Distribution Order”), payments were made to all Authorized Claimants who were eligible to receive a payment of at least $20.00 from the distribution. Pursuant to the Distribution Order, Authorized Claimants whose distribution amounts were less than the $20.00 minimum threshold did not receive a payment.
Settlement of Class Claim Filed in the SIPA Liquidation of Lehman Brothers Inc.
In March 2015, an additional proposed settlement was reached with the trustee for the liquidation of Lehman Brothers Inc. (“Lehman”) under the Securities Investors Protection Act of 1970 (“SIPA”) that provides for the resolution of the Class Claim filed by Plaintiffs on behalf of themselves and the Class in Lehman’s SIPA liquidation proceeding in the United States Bankruptcy Court (the “Settlement”). On February 5, 2016, the Court approved this additional settlement.
The settlement results in the allowance of a general, unsecured creditor claim against Lehman’s estate in the SIPA liquidation proceeding in the amount of $16,500,000 (the “Allowed Class Claim”). The amount that will ultimately be recovered from Lehman’s estate with respect to the Allowed Class Claim is currently unknown but is estimated that it will potentially be 50% of the value of the Allowed Class Claim, or approximately $8,250,000. This estimate is based on the amount of the distributions made to date in the SIPA Proceeding and the estimated potential amount of all future distributions. The amount recovered, less Court-approved fees and expenses will be allocated among eligible Authorized Claimants. Please note: only those Authorized Claimants (i) who purchased Floating Rate Notes, 7.250% Notes and/or Series R Stock during the Class Period; (ii) whose claim calculated to a Securities Act Loss under the Court-approved Plan of Allocation; (iii) who received a distribution with respect to that loss; and (iv) who cashed their distribution checks will be eligible to share in the funds obtained through the Settlement.
You do not need to submit a Claim Form or take any other action to be eligible to receive funds obtained through the proposed Settlement. The funds received in connection with the Allowed Class Claim will be distributed to eligible Authorized Claimants together with future distributions of the net settlement funds from the previously achieved settlements.