WaMu Investors Get Class Cert. In $10B MBS Suit

Law360, New York (October 24, 2011, 1:54 PM EDT) -- A Washington federal judge on Friday ruled that about 700 investors can go forward as a class in a suit accusing Washington Mutual Bank of lying about the quality of $10 billion in mortgage-backed securities it sold.

The plaintiffs, a group that includes a benefit fund for Chicago police officers and a trust held by the national boilermaker's union, claim that Washington Mutual sold MBS backed by loans that were “fundamentally impaired.”

The bank lied about the quality of its underwriting, and the MBS collapsed into...
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