SEATTLE, Oct. 14, 2014 /PRNewswire/ -- WMI Liquidating Trust, formed pursuant to the confirmed Seventh Amended Joint Plan of Affiliated Debtors under Chapter 11 of the United States Bankruptcy Code (as modified, the "Plan") of Washington Mutual, Inc. ("WMI"), today filed a lawsuit in King County Superior Court in the State of Washington against 16 former officers and directors of WMI (the "Defendants"). The complaint alleges that the Defendants breached their fiduciary duties to WMI and committed corporate waste by squandering the company's financial resources.
On September 10, 2008, the Defendants implemented, approved or acquiesced to a transaction that transferred $500 million of WMI's capital to Washington Mutual Bank ("WMB"), a wholly-owned subsidiary of WMI that was distressed and facing imminent seizure by the Federal Deposit Insurance Corporation (the "FDIC") due to inadequate liquidity. The funds from WMI were already on deposit at WMB, so the transfer increased the amount of regulatory capital on WMB's balance sheet but did not address WMB's liquidity shortage. On September 25, 2008, WMB and the $500 million of capital it received just 15 days earlier from WMI were seized by the FDIC. WMI filed for Chapter 11 the next day.
WMI Liquidating Trust is seeking damages, costs and reasonable attorneys' fees, and other relief as the court deems just and proper, including prejudgment interest at the legal rate.
A copy of the complaint and additional information about WMI Liquidating Trust can be found at www.wmitrust.com.
Andrew Siegel / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
SOURCE WMI Liquidating Trust