The parties reached a settlement in the WMI bankruptcy proceeding that was approved by the FDIC's Board of Directors on May 20, 2010, and WMI filed a plan of reorganization incorporating the terms of the settlement ("WMI Bankruptcy Settlement").
Several parties objected to WMI's proposed plan, and in particular, WMI's proposal to release its claims against JPMC, the FDIC and the Receiver.
The Plan and Settlement became effective on March 19, 2012. The most recent receivership balance sheet summary can be found at the following link: (WAMU Quarterly Receivership Balance Sheet Summary).
The Receiver received 3.9 million pursuant to the terms of the WMI Bankruptcy Settlement. Before the Receiver can distribute these funds, however, it must pay administrative expenses and resolve a number of lawsuits that have been filed against it, the largest of which was filed by Deutsche Bank National Trust Co.
Plaintiffs achieved three settlements with defendants in this securities class action litigation in 2011 totaling 8.5 million: (i) a 5 million settlement with certain former officers and directors of Washington Mutual, Inc.
(“WMI”) and WMI; (ii) an million settlement with certain underwriters of WMI’s securities offerings; and (iii) an .5 million with Deloitte & Touche, WMI’s auditor.
On October 25, 2013, pursuant to the Order Approving Distribution Plan (the “Distribution Order”), payments were made to all Authorized Claimants who were eligible to receive a payment of at least .00 from the distribution.
According to The Wall Street Journal, Rotella and Schneider are now arguing their golden parachute payments should have been triggered by the seizure and subsequent sale of Wa Mu’s banking assets to JPMorgan Chase in 2008.
Because of the seizure, they say, Wa Mu ceased to be covered by federal rules that bar golden parachute payments when banks fail unless they receive an exemption from the FDIC.
On February 24, 2012, the Bankruptcy Court entered an order confirming the seventh amended plan - PDF proposed by WMI and its co-debtor WMI Investment Corp (the "Plan").
The WMI Bankruptcy Settlement - PDF, as amended from time to time, remains integral to and incorporated in the Plan.