Shareholder sues Washington Mutual officers, directors

A St. Petersburg man whose family owns 34,000 shares of stock in Washington Mutual is suing the company's officers and directors — on behalf of the company.

He says their failure to do their jobs cost the company more than $500-million.

In what's known as a shareholder derivative suit, Alan Henry asked the U.S. District Court in Seattle to award the company damages. He says the directors and officers failed to properly monitor the company's dealings in subprime and adjustable rate mortgages.

Before the problems were uncovered, directors and other insiders sold $35-million of stock, the suit says. After the problems became known, the stock lost two-thirds of its value.