Washington Mutual and its former officers, directors, underwriters and auditor late last week agreed to a $208.5 million settlement on one of the largest class-action lawsuits stemming from the financial crisis, according to court documents. In exchange, the plaintiffs would dismiss all claims against the defendants. The lead plaintiff and lead counsel said that this proposed settlement represents “an excellent result and are in the best interests of the class,” according to court documents. The case was consolidated from about 20 plaintiffs who claimed the bank quietly reduced lending standards to inflate home-price appraisals and was not open with customers when loans began to fail