CORRECTED Class Seeks Final OK For $209M Deal Over WaMu Stock

Law360, New York (September 26, 2011, 4:05 PM EDT) -- A class of investors moved on Sunday for final approval of a $209 million settlement against Washington Mutual Inc. over allegations the bank boosted its stock price by hiding its exposure to bad mortgages and inflating prices for WaMu-mortgaged homes.

The settlement, the result of court-ordered mediation earlier this year, guarantees the plaintiffs at least some recovery from the rapidly shrinking coffers and insurance held by the bank, whose 2008 collapse was the biggest bank failure in U.S. history.

“The certainty of the substantial recovery to...
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