Judge Greenlights $105M WaMu Truce With Investors

Law360, Wilmington (September 6, 2011, 7:40 PM EDT) -- A Delaware bankruptcy judge on Tuesday cleared Washington Mutual Inc. to tap its insurers for a $105 million settlement with shareholders in a multidistrict litigation alleging the failed bank abandoned risk management policies during the housing bubble.

U.S. Bankruptcy Judge Mary F. Walrath signed off on the deal — along with settlements in two smaller securities suits — although the larger settlement still needs the approval of the district court in Washington before it can be implemented. The district court has scheduled a hearing on the...
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