Washington Mutual Inc. OTC: WAMUQ common stock that is currently trading at over the counter stock exchange for just pennies has been hit on the news. Washington Mutual assets are practically worthless. What should investors do? Can I sue Washington Mutual for securities fraud? Do I qualify to join a class action suit against Washington Mutual? Can I recover my money and investments I made in Washington Mutual stock?
With its current market cap as of today valued at only $179.1 Million, there isn’t much money left to recover and only crumbs will be left to Washington Mutual stock investors to fight for. My 401K plan is comprised mainly of disvalued Washington Mutual common stock. What can I do?
Certainly, the news of devaluing Washington Mutual stock is a disaster if you thought that Washington Mutual stock was a sure-fire stable investment and failed to diversify your investments. How do you go about recovering money from your lost investment?
What class action law firms have filed a securities fraud legal action against Washington Mutual? There are quite a few so far. Here is a summary of public announcements made by class action firms that have filed law suits against Washington Mutual.
The Securities Law Firm of Klayman & Toskes files a securities class action law suit against Washington Mutual on behalf of stock holders.
The Securities Law Firm of Klayman & Toskes, announced on October 3, 2008 that a class action lawsuit, Case No. 08-cv-09801, has been filed on behalf of purchasers of Washington Mutual (OTC: WAMUQ) securities. Potential class members should consider whether they should participate in the class action or file an individual securities arbitration claim.
Klayman & Toskes represents retail and institutional investors who have sustained investment losses as a result of holding large, concentrated positions in a single stock or a specific sector. Many full-service brokerage firms recommended the purchase of Washington Mutual securities to both retail and institutional accounts. However, brokers and financial advisors may have purchased an unsuitable amount of Washington Mutual securities in their clients' accounts, thereby creating a significant over-concentration. Over- concentration exists when 10% or more of the investment portfolio is invested in a single security or sector.
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced substantial losses as a result of being over-concentrated in Washington Mutual securities, it may be more beneficial for them to file an individual securities arbitration claim.
SOURCE The Securities Law Firm of Klayman & Toskes
The Securities Arbitration Law Firm of Tramont Guerra & Nunez, PA (TGN) made a public announcement regarding a class action filed against Washington Mutual on October 7, 2008.
The Securities Arbitration Law Firm of Tramont Guerra & Nunez, PA (TGN) makes an announcement to Washington Mutual (NYSE: WM) shareholders concerning the class action period. The Washington Mutual class action lawsuit (Case No. 07 CV 09801) class period, which runs from July 19, 2006 to October 31, 2007, does not include losses during the 2008 market decline.
Since the filing of the class action lawsuit, Washington Mutual stock has continued to decline and today is practically worthless. As a result of these developments, shareholders who held Washington Mutual stock through the advice of a financial advisor with a full service brokerage firm might recover a greater portion of their losses in an individual arbitration claim, through pleading a sales practice violation.
Sales practice violations, such as investment concentration in a particular security or sector and the failure to implement risk management strategies, are both violations which qualify for damages from a security arbitration claim filed with the Financial Industry Regulatory Authority, (FINRA). Investors that relied on a financial advisor may be able to pursue a securities arbitration claim with FINRA when their case facts and investment losses justify such a claim. In some cases, shareholders must "opt-out" as a class member in order to pursue a securities arbitration claim, otherwise this legal option is not available.
SOURCE: Tramont Guerra Núñez, PA
From Bracewell & Giuliani LLP
In connection with the FDIC receivership for Washington Mutual Bank (WaMu Bank), as well as the Delaware Chapter 11 proceedings for Washington Mutual, Inc. (NYSE:WM) and WMI Investment Corp., a group of WaMu Bank senior and subordinated noteholders formed last week in order to discuss matters of mutual interest. The group, which continues to grow, includes more than two dozen institutional investors and secondary market purchasers holding close to USD 2 billion in senior and subordinated notes.
SOURCE: Bracewell & Giuliani LLP
As usual, it is likely that once multiple legal actions are filed, they will be consolidated in one law suit. Considering there are so many class action law firms involved, there won’t be money left to distribute to the actual stock holders once the dust settles and Washington Mutual agrees to settle the law suit.
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Wednesday, October 8, 2008
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There will be lots of litigation as a result of the mortgage crisis and the sinking economy. Class actions, like the one against WaMu, may yield some recovery...but given the number of plaintiff that will constitute the class and the minimal assets left in WaMu, plaintiffs will recover pennies on the dollar at best (and even assuming that the corporate veil can be pierced to get to the officers and directors). Still it doesn't hurt to sign up to belong to a class (if you fall within the class and have a valid claim). Just don't expect to get your investment back in return. This should all be common sense though...
ReplyDeleteIs there any class action law suits against the rating companies or the FDIC ??
ReplyDeletethe FDIC rushed to sell wamu to jp morgan-chase at pennies to the dollar -so they don,t have to face clients of wamu, the only fair thing here is that jp morgan chase will pay all the current stocks holders of wamu a stlmnt. of $5-$7 a share in $cash or chase stocks. wamu was worth much more than what chase paid for it-if chase plays unfair- the public has the power to boycott chase completely-until somebody else will come and rescue chase for pennies to the dollar
ReplyDelete