Welcome to the Washington Mutual, Inc. Securities Litigation Website
IMPORTANT UPDATE: The Settlement Hearing originally scheduled for January 15, 2016 has been RESCHEDULED for February 5, 2016 at 9:00 a.m.
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.
UPDATE: Proposed 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”).
If this Settlement is approved by the Court, it will result 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.
If the Settlement is approved by the Court, 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. If the Settlement is approved, 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.
On June 19, 2015, the Honorable Marsha J. Pechman preliminarily approved the proposed Settlement. A Settlement Hearing is scheduled for February 5, 2016 at 9:00 a.m. at the United States District Court for the Western District of Washington, United States Courthouse, 700 Stewart Street, Courtroom 14206, Seattle, WA 98101. At the Settlement Hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate and should be approved, and whether a motion by Lead Counsel for an award of attorneys’ fees and reimbursement of expenses should be approved.
Please review the full Notice of Proposed Settlement of Class Claim Filed in the SIPA Liquidation of Lehman Brothers Inc. which provides more details about the proposed Settlement. Any Class Member who wishes to object to the proposed Settlement or Lead Counsel’s motion for fees and expenses, must file the objection with the Court and deliver it to Lead Counsel and counsel for the SIPA Trustee so that it is received no later than January 15, 2016, in accordance with the instructions set forth in the Notice.