LOS ANGELES (AP) — Washington Mutual Inc. and its fellow defendants have agreed to pay $208.5 million to settle a class-action lawsuit stemming from the lender’s collapse in 2008, the biggest U.S. bank failure in history.
The defendants and lead plaintiff Ontario Teachers’ Pension Plan Board outlined the terms of the agreement in documents filed with U.S. District Court in Seattle on Thursday.
The pact calls for Washington Mutual to pay $105 million, for a group of underwriters that includes Goldman, Sachs & Co., to pay $85 million, and for Deloitte & Touche LLP to kick in another $18.5 million. In exchange, the plaintiffs have agreed to dismiss all claims against the lender and its co-defendants.
The settlement must be approved by a bankruptcy court overseeing Washington Mutual’s reorganization plan.
In 2008, the federal government seized WMI’s flagship bank, based in Seattle, and sold its assets to JPMorgan Chase & Co. for $1.9 billion.
