Several class actions have been filed against financial services company Washington Mutual, Inc., (NYSE: WM) and certain of its officers and directors by stockholders who purchased the company's common stock between April 15, 2003, and June 28, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The lawsuit alleges that, throughout the applicable period, the defendants issued false and misleading statements regarding Washington Mutual’s ability to grow in the face of any expected interest rate increases, as well as the company’s purported financial hedging strategies. On June 29, 2004, investors learned the truth about the company after the defendants issued a press release announcing a very significant earnings and net income shortfall which far exceeded any guidance previously sponsored and endorsed by the defendants.

According to this announcement, increases in interest rates had, in fact, impacted Washington Mutual's mortgage banking business to such an extent that earnings for the full year were revised to as low as $3.00 per share, compared to the up-to-$4.80 per share guidance provided at the inception of the class period. In addition, the defendants did not properly hedge the company’s interest rate risk so that the risk is now having a material adverse impact on the company. Following the publication of this surprising and belated news, the company’s stock prices fell to $36.50 per share, from a closing price of $41.31 per share on June 29, 2004, a decline of nearly 12%.

If you purchased securities issued by Washington Mutual during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by September 20, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve you in this action, or you may choose to do nothing, and remain in the class as a silent member.