Court Approves $26 Million Settlement in Washington Mutual Mortgage Backed Securities Class Action

On January 11, 2013, U.S. District Court Judge Marsha J. Pechman for the Western District of Washington granted final approval of the Washington Mutual Mortgage Backed Securities Litigation class action. Tousley Brain Stephens attorneys Kim D. Stephens and Janissa A. Strabuk served as court-appointed liaison counsel for the class.

The settlement resolves litigation over whether WaMu Capital Corp., WaMu Asset Acceptance Corp. and certain of their officers and directors issued or signed false or misleading registration statements or prospectus supplements in connection with offerings of mortgage backed securities. The law firms of Cohen Milstein Sellers & Toll PLLC and Scott + Scott LLP served as lead counsel.

The defendants agreed to pay $26 million in cash to settle the litigation. The balance of this fund, after payment of Court-approved attorneys’ fees and expenses, taxes, and the costs of claims administration will be divided among all class members.

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