Judge Denies WaMu Bid To Nix $49M MBS Claim

Law360, Wilmington (December 20, 2011, 7:51 PM EST) -- Washington Mutual Inc. lost a bid on Tuesday to disallow a hedge fund’s $49 million bankruptcy claim against the holding company over mortgage-backed securities sold by its subsidiaries.

U.S. Bankruptcy Judge Mary F. Walrath found that Tranquility Master Fund Ltd. had sufficiently pled a claim against WMI for so-called control person liability in connection with 56 securities allegedly packaged and sold by Washington Mutual Bank NA units in violation of state and federal securities laws, according to a 21-page opinion lodged in Delaware bankruptcy court....
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