WSJ: Washington Mutual equity investors have an “ample basis” to push ahead with allegations that major hedge funds engaged in improper trading during one of the largest bankruptcies in U.S. history, an attorney for WaMu shareholders said Wednesday.
Appaloosa Management, Centerbridge Partners, Owl Creek Asset Management and Aurelius Capital Management have denied what a lawyer for Aurelius called “deadly serious and dangerous allegations” of wrongdoing in WaMu’s Chapter 11 case.
Shareholders have no proof of wrongdoing, the hedge funds told a bankruptcy judge Wednesday, in spite of conducting a detailed probe into suspicions that the four turned confidential information picked up at the Chapter 11 plan bargaining table into profits.
