Bad news for a group of ex-Washington Mutual employees. A U.S. District Court judge has dismissed their lawsuit seeking to recover 401(k) losses from JPMorgan, the financial giant who now owns part of WaMu.
After Washington Mutual filed for bankruptcy in September 2009, the employees of the company added JPMorgan Chase as a defendant, after the second largest U.S. bank acquired some banking assets of the failed company. But earlier this year, JPMorgan asked the court to dismiss the action saying it had bought only assets of Washington Mutual and not the entire holding company, alleging it was not responsible for the collapse of the financial institution.
On Monday, U.S. District Judge Marsha Pechman dictated JPMorgan could not be liable for the mismanagement of the retirement funds.