Judge Marsha Pechman of the U.S. District Court for the Western District of Washington has issued an order partly denying WaMu's motions to dismiss Boilermakers National Annuity Trust Fund's securities act claims.

The court ruled that the Bolilermakers have alleged actionable claims on seven deals worth $10.8 billion in MBS certificates issued and underwritten by WaMu and its related entities.

The certificates were backed by pools of RMBS loans. WaMu, formerly Washington Mutual, was the nation's biggest savings and loan association until it failed in September 2008.

Pechman granted WaMu's motion to dismiss claims pertaining to 25 certificates. But, the court ruled that the alleged misstatements and omissions found in the description of the purported loan underwriting guidelines in the offering documents gave rise to actionable claims under the Securities Act of 1933 for the seven offerings.

She further held that WaMu failed to show that the purchase and sale agreements shielded it from liability and that economic loss was not sufficiently alleged, or that the offering documents had enough risk disclosures.

"This decision is good news for investors," said Boilermakers' co-lead counsel Steven Toll, a partner at Cohen Milstein Sellers & Toll. "While we are disappointed that the court dismissed a number of offerings from the case, we are gratified that the court has permitted the prosecution of this case to go forward."

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