NEW YORK, Dec. 19, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that only 16 days remain to move for Lead Plaintiff in securities class actions against Washington Mutual, Inc. ("WAMU" or the "Company") (NYSE:WM)
The Firm is investigating possible securities and other legal violations regarding recent allegations that WAMU coerced real estate appraisers to inflate appraisals so that WAMU could close mortgages on thousands of residential properties. It is further alleged that WAMU's financial statements are materially misleading since they reflect the overvalued properties as mortgage collateral.
On October 17, 2007, WAMU was forced to reveal that its anticipated fourth quarter 2007 writedowns of home loan assets would be significantly greater than previously disclosed. These writedowns appear to be related in part to the loans written based on the inflated appraisals. Between October 18 and October 31, Washington Mutual's stock price declined by 14 percent.
On November 1, 2007, the New York Attorney General ("NYAG") filed a lawsuit against First American Corporation and its subsidiary eAppraiseIT. eAppraiseIT was one of the firms which performed a very significant amount of appraisal work for WAMU, and the NYAG has alleged that WAMU coerced it into inflating numerous appraisals. In the aftermath of this disclosure, WAMU shares have fallen an additional 47 percent.
During the Class Period, CEO Kerry Killinger sold approximately 400,000 of his own shares at prices ranging from $42 to $45 per share, for proceeds of approximately $15 million.
If you: (i) currently hold WAMU shares acquired before April 18, 2006; or (ii) purchased WAMU shares between April 18, 2006 and October 31, 2007, and held them through October 17, 2007 or thereafter, and you are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.