WaMu Liquidator Fights Investors' $435M Claim In MBS Suit

Law360, New York (May 3, 2012, 3:11 PM EDT) -- Washington Mutual Inc.'s liquidating trust asked a Delaware bankruptcy judge Tuesday to deny the claim of plaintiffs pursuing $435 million related to mortgage-backed securities in a class action against WMI's subsidiaries in the defunct bank's Chapter 11 case.

In a consolidated suit now pending in Washington federal court, the plaintiffs accused Washington Mutual Bank NA and other WMI affiliates of misrepresenting the quality of billions of dollars worth of mortgage-backed securities, and the district judge certified a class of investors in October.

The plaintiffs — the...
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