WaMu Units Will Pay $26M To End MBS Class Action

Law360, New York (September 5, 2012, 12:52 PM EDT) -- Two former Washington Mutual Bank Inc. units agreed Tuesday to pay $26 million to settle class claims that they misled investors about the quality of their mortgage-backed securities.

The settlement, outlined in the plaintiffs' motion for preliminary approval filed Tuesday, ends allegations of Securities Act of 1933 violations that were brought by a certified class of investors who purchased MBS certificates from WaMu Asset Acceptance Corp. and WaMu Capital Corp. on or before Aug. 1, 2008. The certified class contended the loans backing the securities were...
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