NEW YORK, July 23, 2004 (PRIMEZONE) -- The New York law firm of Wechsler Harwood LLP today announced that it has commenced an investigation against Washington Mutual, Inc. ("WAMU" or the "Company") (NYSE:WM) for violations of the Employee Retirement Income Security Act of 1974 ("ERISA") in relation to its handling of investments in the Company's employee retirement benefit plan (the "Plan").
In particular, the investigation focuses on whether the Company and certain Plan administrators breached their fiduciary duties by: (a) negligently misrepresenting and negligently failing to disclose material facts to the Plan and the Plan participants in connection with the management of the Plan's assets and (b) negligently permitting the Plan to purchase and hold WAMU stock when it was imprudent to do so.
The material facts being investigated include, but are not limited to allegations that, since April 15, 2003, WAMU purportedly had issued false and misleading information concerning its ability to hedge against a rise in interest rates. On June 29, 2004, WAMU stunned the market with its announcement that earnings for 2004 would be substantially less as a result of rising interest rates and the resultant effect on the Company's mortgage business. Shares of WAMU stock declined precipitously in the wake of this disclosure, losing nearly $5 billion in market capitalization, or nearly 12% in value.
Subsequently, a number of class actions were filed in the United States District Court for the Western District of Washington against the Company and certain of its officers and directors alleging violations Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are or were a Plan participant and hold shares of WAMU stock in your retirement benefit plan and want to discuss this investigation with an attorney or have any questions concerning this notice, your legal rights or any matter within our expertise, you may e-mail or call Wechsler Harwood who will, without obligation or cost to you, attempt to answer your questions. Wechsler Harwood has extensive experience in both federal securities and ERISA litigation and has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca