A judge for the U.S. District Court for the Western District of Washington has issued an order that partially denies defendants’ motion to dismiss plaintiffs’ Securities Act claims in a mortgage-backed securities case.
Judge Marsha J. Pechman, in the case of Boilermakers National Annuity Trust Fund, et. al. v. WaMu Mortgage Pass Through Certificates, Series AR1, et. al, has granted defendants' motion to dismiss claims pertaining to 25 certificates.
However, the court ruled that plaintiffs have actionable claims with respect to seven offerings totaling $10.8 billion in mortgage-backed certificates issued and underwritten by Washington Mutual and its related entities prior to WaMu’s failure in 2008.
Plaintiffs allege misstatements and omissions relating to the description of the purported loan underwriting guidelines in the offering documents.
