Investors Denied $435M MBS Claim In WaMu Bankruptcy

Law360, New York (May 7, 2012, 7:58 PM EDT) -- The Delaware judge overseeing Washington Mutual Inc.'s bankruptcy said Monday that a class of investors who have sued Washington Mutual Bank NA over mortgage-backed securities fraud in Washington cannot file a $435 million claim in the bankruptcy case until other creditors have collected.

U.S. Bankruptcy Judge Mary Walrath said at a hearing Monday that the investors' previous agreement not to file a claim until a group of low-ranking creditors had recovered their securities fraud claims was binding, according to WaMu attorney Brian Rosen of Weil Gotshal...
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