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CONFIDENTIAL

Jan. 28, 1995

Securities Fraud
Investment Plan

Confidential

Settlement –  $12,000,000

Judge

Steven Scott

Court

King Superior


Attorneys

Plaintiff

James A. Oliver


Defendant

Camden M. Hall

John D. Lowery


Facts

This case is a securities fraud class action against Defendants Washington Mutual and its subsidiary securities brokerage, Murphey Favre, resulting from Murphey Favre's sale of high yield bonds in 1987-88. Plaintiffs alleged that Murphey Favre had divided into much smaller segments high yield bonds issued by Homestead Savings, a now-defunct California savings and loan. These bonds were issued in $100,000 increments. Class counsel James A. Oliver sued Defendants Murphey Favre and Washington Mutual for alleged liability on behalf of 2,100 investors, the Plaintiffs.

Settlement Discussions

Initial offers and demands, if any, were not disclosed.

Damages

The average Washington investor paid in about $10,000, but the majority invested between $1,000 and $5,000.


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