9th Circ. Cans WaMu Workers' Pay Claims Against FDIC

Law360, New York (September 11, 2012, 10:29 PM EDT) -- The Ninth Circuit on Tuesday upheld the dismissal of a complaint brought by former Washington Mutual Bank NA employees alleging the Federal Deposit Insurance Corp. violated their employment contracts after it sold the defunct bank's assets in receivership to JPMorgan Chase NA.

In an unpublished memorandum, the three-judge panel ruled that the employees' contracts were extinguished when the FDIC took control of the troubled bank, upholding the decision of U.S. District Judge Richard A. Jones.

In their brief, the former employees had claimed that the “very...
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