Washington Mutual, Inc. is a large financial services company in the United States.

A class action lawsuit has been brought in the United States District Court for the Southern District of California, asserting that Washington Mutual maintained and failed to disclose a "preferred list" of proprietary mutual funds while concealing from investors revenue-sharing and other incentive programs intended to sell the WM Group of Funds. The Complaint alleges that Washington Mutual violated federal securities laws by issuing materially false and misleading information in the mutual fund prospectuses, which impeded investor access to alternative funds and superior returns.

On June 6, 2007, the Court appointed the named Plaintiff as lead Plaintiff and Finkelstein & Krinsk as lead Counsel. Defendants' motions to dismiss the original Complaint were denied as moot. Shortly thereafter, an Amended Complaint was filed on August 24, 2007. Defendants again moved for dismissal. On January 17, 2008, the U.S. District Judge Dana M. Sabraw granted the Defendants’ motion to dismiss with prejudice and with leave to amend. On February 6, 2008, the Plaintiff filed a Second Amended Complaint, and the Defendants responded by filing motions to dismiss the Second Amended Complaint. On June 17, 2008, the Court granted the Defendants’ motions to dismiss the Second Amended Complaint and the Court entered the Clerk’s Judgment that day. The Plaintiff then filed a motion for reconsideration regarding the Order on Motion to Dismiss and the Clerk’s Judgment.

On August 19, 2008, U.S. District Court Judge Dana M. Sabraw denied the Plaintiffs’ motion for reconsideration regarding the June 17, 2008 Order on Motion to Dismiss and the Clerk’s Judgment. The Plaintiffs filed an appeal on September 11, 2008, and the appeal was then pending in the Ninth Circuit Court of Appeals.

On March 25, 2009, the Court entered the Order from the U.S. Court of Appeals. The parties agreed to dismiss the appeal as to appellees WM Trust I, WM Trust II, WM Strategic Asset Management Portfolios, LLC, WM Financial Services, Inc., WM Advisors, Inc., WM Funds Distributor, Inc., Edge Asset Managements, Inc., Principal Financial Group, Inc., Principal Investors Fund, Inc., and Principal Funds Distributor, Inc., only. This case continued as to appellees Washington Mutual, Inc., and WAMU Investments, Inc.

Pursuant to the March 17, 2009 order of the USCA, appellate proceedings are stayed as to appellee Washington Mutual, Inc., under 11 USC 362(a) until April 14, 2009.