Washington Mutual Inc. (Savings Plan)
In re Washington Mutual, Inc. Securities, Derivative and ERISA Litigation
On January 7, 2011, the Honorable Marsha J. Pechman granted final approval of the Class Action Settlement Agreement (“Settlement Agreement”). Chase distributed the proceeds to eligible Settlement Class Members the week of June 20, 2011.
The Consolidated Second Amended Complaint in the ERISA litigation was filed in the United States District Court Western District of Washington (“District Court”) on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of the Washington Mutual Savings Plan (the “Plan”) between October 19, 2005 and September 26, 2008 (the “Class Period”) and whose accounts included investments in Washington Mutual common stock during the Class Period.
Plaintiffs allege that during the Class Period Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
• failing to prudently and loyally manage the Plan’s assets
• failing to monitor fiduciaries
• failing to disclose necessary information to co-fiduciaries
• failing to provide complete and accurate information to the Class
• co-fiduciary liability
• and knowingly participating in a fiduciary breach.
The Settlement provides for a payment of $49 million, net of expenses described in the Settlement Agreement, to the Plan for the benefit of the following Settlement Class:
All persons who were participants in or beneficiaries of the Plan at any time between October 19, 2005 and September 26, 2008, both dates inclusive, and whose individual Plan accounts included investment in Washington Mutual common stock; provided, however, that Defendants and their heirs, Successors-in-Interest, or assigns, to the extent they acquire an interest held by Defendants, are excluded from the Settlement Class.
The District Court held the Fairness Hearing on January 7, 2011. At the Fairness Hearing the Court evaluated the fairness and adequacy of the Settlement and considered Named Plaintiffs’ requests for final approval of the Settlement, for class certification, for approval of a proposed plan of allocation, for an award of attorneys’ fees and expenses, and for service awards to Named Plaintiffs.
Consolidated Second Amended Complaint – 02/18/2009
Notice of Class Action Settlement – 08/06/2010
Supplemental Settlement Notice and Fairness Hearing – 11/03/2010
Order re Final Judgment – 01/07/2011