SHAREHOLDER CLASS ACTION FILED AGAINST WASHINGTON MUTUAL, INC. BY MURRAY, FRANK & SAILER LLP - WM
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NEW YORK (PrimeZone) July 22, 2004 - Murray, Frank & Sailer announces that a class action lawsuit was filed in the United States District Court for the District of Washington on behalf of all purchasers of the securities of Washington Mutual, Inc. (NYSE: WM; "Washington Mutual" or the "Company") from April 15, 2003 through June 28, 2004, inclusive (the "Class Period").
The complaint charges Washington Mutual, Kerry K. Killinger, Thomas W. Casey, and Craig J. Chapman with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company knew or recklessly disregarded the fact that its solid earnings growth was inextricably linked to the extraordinary mortgage volumes fueled by low interest rates; (2) that the Company knew or recklessly disregarded that its earnings growth could not be sustained and that the Company's business strategy was irreversibly flawed, regardless of the Company's efforts to substantially reduce operating costs and streamline and improve operations to drive efficiency; (3) and that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections.
On June 28, 2004, Washington Mutual announced that expectations for a sustained increase in long-term interest rates would significantly impact the Company's Mortgage Banking business resulting in 2004 earnings below previous guidance. Higher interest rates have lowered the Company's mortgage production expectations at a time when cost reduction plans have not yet fully taken effect. This news shocked the market. Shares of Washington Mutual fell $2.84 per share, or 6.87 percent, on June 29, 2004, to close at $38.47 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired shares of Washington Mutual between April 15, 2003 through June 28, 2004, inclusive, and sustained damages, you may, no later than September 20, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
*****ADDITIONAL NOTE: A class action has been filed against DaimlerChrysler AG (NYSE: DCX) on behalf of purchasers of Daimler on NON-US Exchanges between November 17, 1998 and November 17, 2000. If you purchased Daimler stock during this period on a foreign (non-US) exchange, please contact us to discuss the case and your rights.