Case Details: Washington Mutual Bank
Settlement checks will be mailed on January 7, 2009.
Important WAMU Settlement Update as of November 4, 2008
As you are no doubt aware, the FDIC seized control of Washington Mutual Bank on September 25, 2008, the same day the Final Judgment in this matter was entered by the Honorable David Velasquez. Since that time, we have been in contact with the FDIC and have taken the position that the obligation to pay the settlement fund was transferred to JP Morgan in conjunction with the sale of WAMU's "banking assets".
We are very pleased to announce that we have received confirmation on November 4, 2008 from the FDIC representatives that JP Morgan has agreed to honor the settlement and fund the settlement as previously agreed upon. We were initially expecting the administrator to disburse settlement payments in early December pursuant to the settlement terms. We were, however, advised by the FDIC representative that JP Morgan may require additional time to transfer the necessary funds. We shall keep you advised of developments on the payment date by posting further notices on this website.
We have received literally hundreds of calls from concerned class members. We apologize for not returning all of these calls, but we felt it would be more efficient to wait until we had a solid response from the FDIC as to their position in this matter.
Thank you again for allowing us to be of assistance.
Isam C. Khoury, Cohelan & Khoury
Please note, the parties have reached a settlement, which is explained in more detail in the Notice and Claim Form. The settlement administrator mailed the Notice and Claim Form to Class Members on July 2, 2008. The Claim Form must be postmarked no later than September 2, 2008, in order to receive your share of the settlement. If you have not received a Notice and Claim Form and believe you are a class member, please immediately contact our office at (619)595-3001 or the claims administrator directly at (866) 306-9918.
The case concerns allegations by loan consultants that they are owed amounts for unreimbursed business expenses and amounts improperly deducted from their commissions to cover the wages, benefits and bonuses of Sales Assistants. WAMU vigorously denied these allegations.
This certified class action includes approximately 2,500 Loan Consultants and Account Executives of Washington Mutual Bank (WAMU).
There have been over five years of vigorously contested litigation, including over 50 depositions, numerous motions to compel discovery, motions in limine, Defendant's motion for summary adjudication and petitions for writ of mandate. As the parties were on the eve of trial, they attempted for a fourth time to engage in mediation efforts. This followed two unsuccessful mediation attempts and one Mandatory Settlement Conference with the court on September 14, 2007. Following two full days of mediation with one of the most respected mediators in the country followed by subsequent negotiations with the mediator's assistance, the parties reached a proposed settlement. The Court has preliminarily approved the class action settlement which provides for a maximum payment by Defendant of $32,500,000.
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