The Seattle Times recently reported that a settlement “in excess of $200 million” has been reached in a case involving the 2008 demise of the banking giant Washington Mutual.  The suit, filed against a number of WaMu’s former directors and officers and a bevy of Wall Street investment banks, concerns WaMu’s allegedly slapdash lending practices and misleading public statements about the bank’s financial health. See In re: Washington Mutual Inc., Securities, Derivative & ERISA Litigation, No. 08-md-01919 (W.D. Wash.).  The settlement applies only to the securities portion of the case.  There has been no indication in press reports other than speculation to what extent, if any, the settlement will be funded by insurance.

WaMu’s former directors and officers have also been named in a negligence and breach of fiduciary duty suit filed last month by the Federal Deposit Insurance Corporation (“FDIC”). See FDIC v. Killinger, et al., No. 11-cv-00459 (W.D. Wash.). The FDIC, acting as the bank’s receiver, is seeking to recover from WaMu’s D&O insurance program. A copy of the operative complaint can be found here. Look for an article by John Hughes and Greg Pendleton discussing insurance coverage issues for the FDIC’s suit in the upcoming edition of the Professional Liability Underwriting Society Journal.