Judge lets huge WaMu securities lawsuit advance

By TIM KLASS Associated Press Writer

Summary

A federal judge in Seattle has refused to dismiss a multibillion dollar securities lawsuit stemming from the collapse of Washington Mutual Bank.

Story Published: Oct 28, 2009 at 3:02 PM PDT

Story Updated: Oct 28, 2009 at 5:19 PM PDT

Judge lets huge WaMu securities lawsuit advance
SEATTLE (AP) - A federal judge in Seattle has refused to dismiss a multibillion dollar securities lawsuit stemming from the collapse of Washington Mutual Bank.

U.S. District Judge Marsha J. Pechman threw out a few claims against former WaMu bank officers, directors, accountants and underwriters, but she refused to dismiss any of the defendants from the case.

Plaintiffs ranging from huge pension funds to small individual investigators have accused bank executives of securities fraud. They say the failed bank's lending standards and practices were misrepresented, questionable business practices were not disclosed and federal financial reports were misleading.

Bradley S. Keller, a lawyer for the pension groups and individuals who brought the case, says he's delighted with the ruling. Jonathan C. Dickey, a lawyer for the underwriters of WaMu securities, won't comment.