April 28, 2009

Former WaMu employees sue FDIC

Four former employees of Washington Mutual filed suit against federal regulators in Seattle, claiming they were cheated out of their severance pay.

Filed in U.S. District Court, the suit seeks class action status to cover more than 100 former WaMu employees who had severance agreements in their contracts, Seattlepi.com reported Tuesday.

Regulators seized control of the bank Sept. 25. Most of its assets were later sold to JPMorgan Chase.

The FDIC argued the severance pay was withheld because there was no change of control of the bank, the complaint said.

The complaint asks for a trial by jury and demands all class members be awarded appropriate damages against FDIC for breach of contract.