Industry News

More shareholders sue WaMu

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Another lawsuit on behalf of Washington Mutual shareholders has been filed. The law firm of Weiss & Yourman announced Friday that it had filed a lawsuit seeking class action status on behalf of purchasers of Washington Mutual securities from April 15, 2003 through June 28, 2004. The lawsuit is at least the second one filed in the past month. The complaint alleges that Washington Mutual and certain of its officers violated federal securities laws by making material false and misleading statements regarding the company's financial health and future business prospects. It also alleges the company failed to disclose the company's profits were due in large part to large mortgage volumes as a result of low interest rates and that these profits were not sustainable over the long run. After the close of trading June 28, the WaMu announced that it expects its mortgage loan volumes and gain on sale margins to be below expectations. The Seattle-based bank said it now expects to make $3 to $...