Trials & Litigation
Washington Mutual and Big Creditors Settle Shareholder Lawsuit
The bankrupt Washington Mutual Inc. and its biggest creditors agreed to settle a fight with shareholders today, Bloomberg News reports.
The agreement gives shareholders control of the company that will emerge from bankruptcy, according to the article, and includes $25 million for a litigation trust that would bring lawsuits to collect more money for shareholders. In exchange, shareholders dropped allegations that hedge funds owning $25 billion of WaMu’s debt used confidential information to guide investments.
The Seattle-based company filed for bankruptcy in 2008. One day before the filing, JPMorgan Case bought its banking unit for $1.9 billion.
