WaMu Takes Aim At 12 Insurers In D&O Coverage Fight

Law360, New York (March 15, 2012, 10:16 PM EDT) -- Washington Mutual Inc. sued XL Specialty Insurance Co. and 11 other insurers Thursday for coverage of claims against WaMu directors and officers over an allegedly improper $500 million transfer to a bank subsidiary shortly before WaMu's 2008 Chapter 11 filing.

A letter WaMu and its creditors committee sent to the directors and officers in October said the transfer, made 15 days before the bank was seized by the U.S. Office of Thrift Supervision, was “purposeful, reckless and wasteful” and a breach of their fiduciary duties, WaMu...
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