Ultimately, Washington Mutual collapsed, becoming the largest bank failure in U.S. history. The crash left investors, who held stocks that traded at about $36 per share a year ago, holding shares that were essentially worthless.
Investors are now taking WaMu to court, claiming the bank lied to them.
"WaMu was saying, consistently, up to the end, that they were conservative, prudent, rigorous," but in reality, "it was run in a way that was irresponsible, reckless, dangerous," contends Chad Johnson of Bernstein Litowitz Berger & Grossmann LLP, one of the attorneys representing the shareholders who filed the lawsuit.
ABC News' Arash Ghadishah, Beth Tribolet and Theresa Cook contributed to this report.