Aurelius Objects To WaMu Plan, JPMorgan Settlement

Law360, Wilmington (June 22, 2011, 5:22 PM EDT) -- Aurelius Capital Management LP reversed course Wednesday and objected to Washington Mutual Inc.’s reorganization plan, taking issue with both the plan and the global settlement with JPMorgan Chase & Co. cleared by a Delaware bankruptcy court in January.

Aurelius — one of four hedge funds under investigation by WaMu shareholders for alleged insider trading in connection with the settlement negotiations — said extensive delays in the bankruptcy improperly tipped the scales of settlement value in favor of JPMorgan. 

JPMorgan sits on more than $4 billion in...
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