Thursday, January 26, 2012

Judge may cancel WaMu insider-trading ruling

WILMINGTON, Del. — A Delaware bankruptcy judge on Wednesday granted Washington Mutual Inc.'s request that she consider throwing out portions of a September ruling that gave some creditors permission to pursue claims of insider trading by several hedge funds, who are also WaMu creditors.

WaMu and supporting creditors argued that an agreement on its latest reorganization plan depends on Judge Mary Walrath removing language regarding the insider trading allegations from the September ruling, in which she rejected Washington Mutual's proposed reorganization plan for a second time.

Walrath said that in granting WaMu's motion, she was not canceling her earlier ruling or saying she was inclined to do so, but only that she would consider it.

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