Two former Washington Mutual Bank units have reached a $26 million settlement agreement over claims they misled investors over the sale of mortgage-backed securities, Reuters reported yesterday. Lawyers for plaintiffs filed a notice of the settlement on Monday in U.S. federal court in Seattle, averting a trial that was scheduled to begin on Sept. 17. The lawsuit alleged that registration documents filed in connection to the securities failed to accurately describe WaMu's underwriting practices. The case is In Re Washington Mutual Mortgage-Backed Securities Litigation, 09-00037.
