Friday, October 10, 2008

Disgruntled WaMu Shareholders Sue Washington Mutual and JP Morgan Chase

Washington Mutual shareholders sure did incur losses. Practically all of wamu stock is now devalued. Chase got the juice from the deal, snatching devalued assets and client base of Washington Mutual at a bargain price. However, wamu shareholders are not happy and are on a quest to recover their unsecured high risk investments. Not knowing anything about the Safe Harbor Disclosure requirements that warns stock purchasers of the risks involved in investing in securities, common company stock in particular, which is a statement that appears on almost every SEC filing, proxy statement, and press release of every publicly traded company in the US since the Private Securities Litigation Reform Act of 1995, an individual investor, without first waiting for a class certificate and the opportunity to opt out as a class member, filed a Limited jurisdiction law suit in Municipal Court.

Safe Harbor Disclosure warns current and future shareholders of the potential risks associated with securities investing. It typically states that the information provided in a company’s earnings estimates and press releases is not to be deemed accurate and reliable and only presents what the company predicts it will earn going forward. Potentially changing market and economic conditions may affect the earnings significantly and are out of hands of the company’s executive team as well as financial analysts tracking the performance of the company stock.

The growing number of securities fraud law suits against Washington Mutual that have been filed and are moving for a class certificate has prompted investors seek recovery. Securities fraud is a Federal Cause of Action which shall be filed in the Federal Court. Yet, desperate individual investors, not knowing how to proceed and not understanding that their case has no merit, have moved to civil court on alleged damages against Washington Mutual and JP Morgan Chase.

As hilarious as it is, a case recently filed by an individual investor Abtin Shakouri, at Santa Monica Branch of the Superior Court for Los Angeles County is has, in fact been filed in LIMITED jurisdiction, Small Claims Court! Plaintiff contends that JP Morgan Chase took over WaMu (OTC:WAMUQ) for $8.75 per share wiping off Defendant’s stock in the transaction. Here is the case summary from the court record on file.

Case Number: 08A02947

SHAKOURI, ABTIN VS. WASHINGTON MUTUAL BANK

Filing Date: 09/29/2008
Case Type: Small Claims (Limited Jurisdiction)
Filing Court: Santa Monica Courthouse
Status: PENDING
________________________________________
Future Hearings
11/14/2008 at 08:30 AM in department WEQ at 1725 Main Street, Santa Monica, CA 90401
SMALL CLAIMS COURT TRIAL
________________________________________

History Information

Parties
Plaintiff: SHAKOURI ABTIN
Attorney: None
Defendant: WASHINGTON MUTUAL BANK
Attorney: None
Defendant: J.P. MORGAN CHASE NATIONAL CORPORAT
Attorney: None
________________________________________

Party Information

Histories ( Dates listed in descending order)

09/29/2008 PLAINTIFF'S CLAIM AND ORDER TO DEFENDANT FILED.
RN 1081001E8777. HEARING SET FOR 11/14/08 AT 08:30 AM
IN DPT. WEQ.

09/29/2008 COPY OF PLAINTIFF'S CLAIM AND ORDER TO DEFENDANT FOR
SERVICE BY CERTIFIED MAIL ELECTRONICALLY REQUESTED FOR
DEFENDANT(S)
(J.P. MORGAN CHASE NATIONAL CORPORAT)
(WASHINGTON MUTUAL BANK)

Below are the filed summons and complaint. I think this particular case is Judge Judy worthy. Hopefully, the Plaintiff knows how to locate information for agent for service of process for Washington Mutual/Chase


19 comments:

  1. I'm glad your writer thinks it "hilarious" that shareholders have lost their entire investment because of the criminal incompetence of, among others, attorneys.

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  2. I lost the case, and I know that I was going to lose. I know the Safe harbor laws, and the OTS rules and such regarding thrift banks.

    However I still think that the assets were basically sold of at rock bottom prices.

    You can be contempt with what happened, but I am not.

    In addition to filing this lawsuit, I mailed letters to my members of congress, OTS, FDIC, SEC, etc.

    I don't understand how a company with over $300 billion in deposits and 2,200 bank locations was sold for $1.9 billion? I have looked at the income statements and filings of WM, and they had enough assets to cover themselves, and that is even without taking into account the $700 bailout. So I guess I am disgruntled, that shareholders basically got swindled in this deal.

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  3. I lost the case, and I know that I was going to lose. I know the Safe harbor laws, and the OTS rules and such regarding thrift banks.

    However I still think that the assets were basically sold of at rock bottom prices.

    You can be contempt with what happened, but I am not.

    In addition to filing this lawsuit, I mailed letters to my members of congress, OTS, FDIC, SEC, etc.

    I don't understand how a company with over $300 billion in deposits and 2,200 bank locations was sold for $1.9 billion? I have looked at the income statements and filings of WM, and they had enough assets to cover themselves, and that is even without taking into account the $700 bailout. So I guess I am disgruntled, that shareholders basically got swindled in this deal.

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  4. Sorry for the repeat, it wasn't accepting my google account for some reason.

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  5. The author of this commentary should be horse-whipped. No it wasn't a damned bit "hilarious" about a shareholder trying to get his money back from swindlers (probably lawyers like himself) signed "Lost $20,000 in WAMU stock"

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  6. I am a landlord of WaMu. Chase came and cancelled the lease without obligations and said it is by the Purchase agreement. I invested more than 200,000 dollars and helped WaMu build the branch. Now it became a piece of garbage. In the meantime, I refinanced the building with WaMu for half a million. Now Chase will foreclose my building if I do not pay the mortgage and they said that they paid for the mortgage business not for the lease. Is it fair? Is if capitalist or socialist. FDIC as the government can help one company at the price of civilians. Who can help. If anybody files a class action, let me know.

    Contact: paulQi@aol.com

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  7. I hope Chase crash and burn.

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  8. i lost 50k in wamu stock. can't write it off in the irs bc it was in my 401k sucks for me and other share holders that the fdic beat us out of money. i hope they uncover a scam that someone at the fdic had some kind of connection that would benefit then personally by letting chase by wamu for pennies. i smell something stinky here.

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  9. Biggest bank robery in History. The FDIC gave WaMu to JPMORGANCHASE for free at WaMu stockholders expense.There is definetely wrongdoing here. WaMu was taken over by FDIC prematurely, with paper losses and REAL ASSETS LIKE CASH THAT WAS SWEPT INTO cHASE IMMEDIATELY. It is far from hilarious, you jerk!

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  10. I think the government pick and choose which company will survive and which one will fail. I guess it depends on who got the right connections with government officials.

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  11. As a shareholder of Wamu stock, I think the best thing all of us can do is focus our time and energy on going after the FDIC for taking the bank in the first place. We need to put preasure on the government to hold the FDIC accountable for what they did. Yes I believe the Wamu execs should have done a better job. The FDIC was wrong in taking Wamu.

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  12. what happen to the stock when wamu becomes chase??
    maby u should wait?
    or will the stocks not convert?
    i thinking about buying some wamu shres at 50cents just like wachovia when it was at 55 and wellsfargo made it jump to cents5+
    ben_assad@yahoo.com

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  13. WAMU sue FDIC. See detail
    http://rawstory.com/news/2008/Washington_Mutual_seeks_over_13_billion_0321.html

    There are a lot of back door deals that government put their hands on. It could be illegal. There is a news today "Then-U.S. Treasury Secretary Henry Paulson threatened to remove Bank of America Corp. Chief Executive Kenneth Lewis and the bank's board of directors if the bank backed out of its merger with Merrill Lynch & Co. last year, New York Attorney General Andrew Cuomo said." (http://online.wsj.com/article/SB124050588176348711.html)

    Things like this will surface sooner or later.
    I hope someone can disclose the wrong doing from FDIC and eventually return our investment back. Hon

    ReplyDelete
  14. WAMU is suing FDIC. See detail
    http://rawstory.com/news/2008/Washington_Mutual_seeks_over_13_billion_0321.html

    There are probably a lot of illegal/unethical back door deals government made during the financial storm.
    I saw an interesting news today: "Then-U.S. Treasury Secretary Henry Paulson threatened to remove Bank of America Corp. Chief Executive Kenneth Lewis and the bank's board of directors if the bank backed out of its merger with Merrill Lynch & Co. last year, New York Attorney General Andrew Cuomo said."

    (http://online.wsj.com/article/SB124050588176348711.html)

    It is very possible the FDIC manipulated the WAMU situation. I hope some of facts will come out or some insiders are willing to disclose that.

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  15. Chase is a unethical piece of crap company. They may have swindled the shareholders but they are also ripping off every previous Wamu credit card holder, they increased the 9.9% interest rate in the mid 20s for most people. They rolled over the Wamu 7$ credit protection plan into the chase one which offers a different service, and cost 5 times as much as the Wamu one. They never notified the customers of the changes to their accounts, never got approval to charge them more for the protection service. They are ripping us off so bad its not even funny how they treat their new customers. I will never have anything to do with JP morgan chase, Wamu never pulled this crap with their customers.

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  16. take this poll:
    https : // jpmcpoll.jpmorganchase.com

    remove the spaces!

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  17. The real criminal(s) are the head of WAMU and the Governemnt lawyers who did not arrest him for the criminal misleading of his stockholders when he said WAMU was sufficiently funded to handle any losses they would incur. Shorlt aftert that stement the Govt took them over. One or the other has screwed us, the shareholders. Fraud, either by the head of WAMU, or the conspiracy or criminal incompetence of the government lawyers who did not arrest him for his lies.

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  18. I really would like to know if once Chase's convertion becomes final the wamuq stocks will be eliminated or will they just go into a different name? I have plenty of stocks here to go around and I do not want to loose my money
    thx

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  19. My husband worked for WaMu for ten years and we lost over $125K in employee stock. We cannot recover that amount before we retire, which is when we wanted to start using it. We will NEVER recover it. Paulson is behind all of this and there should be a way for Chase to have to pay stock holders back!! http://www.thepeoplesvoice.org/cgi-bin/blogs/voices.php/2008/09/29/p29111

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