CASES
Countrywide Financial Corp. (2010) (California Superior)
Summary of Case:
A securities class action has been filed against Countrywide Financial Corporation (2010) (California Superior Court) on behalf of all persons or entities who purchased or otherwise acquired (1) Alternative Loan Trust Certificates issued by, inter alia, defendant CWALT, Inc.; (2) CW ABS Asset-Backed Trust Certificates issued by, inter alia, defendant CWABS, Inc.; (3) CHL Mortgage Pass-Through Trust Certificates issued by, inter alia, defendant CWMBS, Inc.; and (4) CWHEQ Revolving Home Equity Loan Trusts and Home Equity Loan Trusts issued by, inter alia, defendant CWHEQ, Inc. (collectively referred to as the "Certificates"). The case has been filed in the California Superior Court, Los Angeles County.
The complaint alleges that the Registration Statements and Prospectus Supplements contained materially false and misleading statements and omitted material information in violation of Sections 11, 12(a)(2) and 15 of the Securities Act, 15 U.S.C. §§77k, 77l(a)(2), and 77o. The claims stem from the activities of defendant Countrywide Financial Corporation, and its wholly owned subsidiary, defendant Countrywide Home Loans, Inc. (collectively, "Countrywide"). According to the complaint, Countrywide is the nation's largest residential mortgage lender. In 2005 and 2006 alone, Countrywide originated in excess of $850 billion in home loans throughout the United States
The complaint alleges that as a result of the material misrepresentations and omissions in the Prospectuses, investors purchased securities that were far riskier than represented and the values of the securities have collapsed as the truth about the quality of the mortgages underlying the Issuing Trusts has emerged.
The complaint further alleges that as a result of, inter alia, the mortgage defaults and Rating Agency downgrades that resulted from Countrywide's failure to comply with stated underwriting and appraisal guidelines, Countrywide faced massive losses beginning in mid-2007. As these losses mounted from increasing delinquencies and foreclosures in the loans it originated and underwrote, Countrywide spiraled toward bankruptcy and was acquired by Bank of America Corporation for $4.1 billion in January 2008.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.