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Aurelius Got Early Updates on WaMu Talks, Lawyer Claims
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Aurelius Capital Management LP used its law firm to get non-public information about progress in Washington Mutual Inc.’s bankruptcy, a lawyer for WaMu shareholders said in court.
Aurelius, a hedge fund that invests in bankrupt companies, learned through its law firm that secret settlement talks to end WaMu’s bankruptcy were going as Aurelius hoped, the shareholder lawyer, Parker C. Folse, said while questioning an Aurelius official in court. The allegation was denied by the hedge fund official, Aurelius Managing Director Dan Gropper.