On June 21, 2010, the Honorable Marsha J. Pechman of the United States District for the Western District of Washington entered an order in Flaherty & Crumrine Preferred Income Fund Inc. v. Killinger, C09-01756, dismissing claims against Simpson Thacher’s clients, certain former officers of Washington Mutual, Inc. Plaintiffs initially filed this action in Los Angeles Superior Court in 2009. Simpson Thacher’s team successfully removed the action to federal court, and it was coordinated for pretrial purposes with the consolidated securities litigation arising out of the collapse of Washington Mutual, currently pending before Judge Pechman. Judge Pechman heard oral argument on the motion to dismiss on June 8, 2010.
Judge Pechman’s order dismissed Plaintiffs’ claims for: (i) statutory and common law fraud; (ii) negligent misrepresentation; and (iii) violations of Sections 10(b) and 20(a) of the Securities Exchange Act based upon Plaintiffs’ failure to adequately plead reliance. Judge Pechman also dismissed as time-barred Plaintiffs’ claim for violations of Section 18 of the Securities Exchange Act. The Simpson Thacher team is comprised of partners Barry Ostrager and Mary Kay Vyskocil, associates Lucy Atwood, Jonathan Weiss, Jacob Press, Nick Melzer, Nathan Agam, Meghan Cannella, Peter Jordan, Ben Gold, Dan Kaplan, and Jessica Marek, and paralegals Marisela Licerio, Amanda Smick, Nicole Forbes and Ron Luba. Simpson Thacher alumni Rob Pfister, Andrew Brettler, and Colleen Keating provided valuable assistance in connection with the motion.