Shareholders Say WaMu Can't Hide Behind Privilege

Law360, New York (December 3, 2010, 8:12 PM EST) -- Shareholders continued their assault Friday on the $10 billion global settlement central to Washington Mutual Inc.’s reorganization plan, making the case that various bankruptcy advisers were improperly relying on the privileged advice of attorneys in testimony supporting the settlement.

As plan confirmation hearings continued in the U.S. Bankruptcy Court for the District of Delaware, attorneys for the official committee of equity security holders, along with other parties left out-of-the-money in the bankruptcy, pressed the issue that the debtors can’t prove the settlement was reasonable while using...
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