Investors suing WaMu win class-action status | Seattle Times Newspaper: "Investors suing Washington Mutual Inc., the former owner of the biggest U.S. bank to fail, won certification as a class-action case of their suit alleging shoddy lending practices.
Shareholders who lost money on stock purchased from October 2005 to July 2008 can proceed with claims under a single lawsuit, U.S. District Judge Marsha Pechman in Seattle ruled Tuesday, according to court documents. The judge appointed the New York-based law firm Bernstein Litowitz Berger & Grossmann to lead the plaintiffs' case.
The lawsuit consolidates more than 20 cases filed against Washington Mutual that claim the bank secretly lowered lending standards, artificially inflated home-price appraisals and failed to disclose its deteriorating financial condition when the loans began to fail.
John Wolfe, an attorney representing Washington Mutual defendants, didn't immediately return a voice-mail message seeking comment."