Former executives and directors at Washington Mutual dodged a bullet over the weekend as a federal judge determined they were not liable for a portion of a massive shareholder lawsuit, according to the Puget Sound Business Journal. A Seattle U.S. District Judge determined that plaintiff allegations were unsubstantial and failed to make a case that WaMu execs had done wrong.
The shareholder lawsuit, filed last year in federal court in Seattle, alleges improper conduct by company officers and directors, who failed to manage risk by allowing out-of-control home lending.
The WaMu employees named in the suit are former chief executive Kerry Killinger, former president Steve Rotella, and several board members. Accounting firm Deloitte and Touche was also named as a defendant.
Seattle Judge Marsha J. Pechman said in her ruling that the “plaintiffs make no effort to connect a particular statement made by any defendant with allegations as to why that statement was false or misleading.”