Hedge Funds Appeal $4B WaMu Securities Win

Law360, New York (January 14, 2011, 6:51 PM EST) -- Hedge funds seeking to claw back $4 billion in securities to be transferred from Washington Mutual Inc. to JPMorgan Chase & Co. as part of WaMu's reorganization plan have appealed a bankruptcy court judge's dismissal of their suit.

The hedge funds, led by Black Horse Capital LP, filed a notice of appeal Thursday in the U.S. Bankruptcy Court for the District of Delaware.

In the lawsuit, filed July, the funds claimed that their preferred securities belong to third-party investors, not to the Chapter 11 estate of...
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