Cohen Milstein Sellers & Toll PLLC and Scott + Scott LLP Appointed Co-lead Class Counsel
A federal court has granted class certification in part to Plaintiffs who purchased mortgage-backed securities (MBS) from WaMu (Washington Mutual) in a case involving alleged Securities Act violations. Named Plaintiffs are Boilermakers National Annuity Trust, Policemen's Annuity and Benefit Fund of Chicago, and Doral Bank Puerto Rico. The court also appointed Cohen Milstein Sellers & Toll PLLC of Washington, D.C., and Scott + Scott LLP of Colchester, Conn., as co-lead class counsel.
Judge Marsha J. Pechman, U.S. District Court for the Western District of Washington, on Friday granted class certification to Plaintiffs who collectively had purchased WaMu Mortgage Pass-Through Certificates on or before Aug. 1, 2008, from 13 "traunches," or slices, of the MBS offerings. The named Plaintiffs, representing more than 700 investors, allege that loans backing the securities were "fundamentally impaired" and that they were misled as to the quality of the loans' underwriting.
According to Judge Pechman, the Plaintiffs satisfied all requirements of Federal Rule 23(a) and Rule 23(b)(3) pertaining to class certification. "The use of the class action here is superior to a number of individual actions," she wrote. "It is beyond dispute that having all claims of the class litigated at once will serve judicial economy and efficiency."
"We are pleased that the Court has ruled in favor of this case against WaMu proceeding as a class action," Plaintiffs' co-Lead counsel Steven Toll, Cohen Milstein Sellers & Toll PLLC and David Scott of Scott + Scott LLP said in a joint statement. "While we are disappointed that the Court did not uphold our standing to represent those who filed similar claims against WaMu, this is very good news for investors in the class."
The case involves substantial claims in mortgage-backed certificates issued and underwritten by WaMu and its related entities. The value of the certificates, which were supported by pools of residential mortgage loans, collapsed relatively soon after issuance. WaMu, formerly Washington Mutual, Inc., was the nation's largest savings and loan association until it became the nation's largest bank failure in September 2008.
A copy of the court order (Case NO. C09-37MJP) is available online at http://www.cohenmilstein.com/media/pnc/2/media.1102.pdf.
Contacts:
Cohen Milstein Sellers & Toll PLLC
Pam Avery, 402-305-0799
pam@turnerstrategies.com
