FDIC Bests Ex-WaMu Workers' Compensation Claims

Law360, New York (September 1, 2011, 5:19 PM EDT) -- A Washington federal judge on Tuesday tossed a lawsuit brought by former Washington Mutual Bank NA employees alleging the Federal Deposit Insurance Corp. violated their employment contracts when it sold the defunct bank's assets in receivership to JPMorgan Chase NA in 2008.

U.S. District Judge Richard A. Jones found that the plaintiffs — more than 100 former WaMu workers — were not entitled to large compensation payments under their employment agreements because those contracts were extinguished when the bank failed.

According to the suit, the Office...
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