It looks like financial class-action lawsuits are popping up from almost everywhere lately. Or is this really the trend ever since? Here’s another financial suit to join the foray.
Washington Manual is alleged to have deceived its investors by steering them to the bank’s own portfolio of mutual funds which were less attractive than alternative funds. As a result, the company is now facing a class-action lawsuit.
The class-action lawsuit contains allegations that Washington Manual and its subsidiary companies had an undisclosed “preferred list” of funds. The suit also alleges that Washington Manual issued misleading disclosures and omissions regarding a side agreement intended to improperly promote WM Financial Services to favor the company’s propriety funds. This move allowed the company to drive sales, regardless of alternatives for their individual retail investor.
The executives of Washington Manual still cannot be reached for a comment on this case.
The class-action lawsuit was filed San Diego federal court on behalf of purchasers and sellers of Washington Mutual’s propriety mutual funds, the WM Group of funds, between at least March 1, 2004, through March 1, 2005.