Bank Of America Hit With New Countrywide Lawsuit

NEW YORK (AP) -- Bank of America Corp. is facing a new lawsuit filed by a group of shareholders of mortgage giant Countrywide Financial Corp., which the bank bought in 2008.

The group of investors, which include BlackRock funds, T. Rowe Price Group Inc., TIAA-CREF and several pension funds including the California Public Employees' Retirement System had earlier rejected a $624 million settlement struck last year deal, saying the terms were inadequate. The lawsuit accused Countrywide of misleading shareholders about its finances and lending practices.

Blair Nicholas, a partner at the law firm Bernstein Litowitz Berger & Grossmann, representing the investors said they will present their claims before a jury. Bank of America spokesman Lawrence Grayson said: "We intend to vigorously defend these claims."

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  • by Barlow Location: Madison on Jul 30, 2011 at 10:17 AM
    Hey WITN, why won't you let people see that Countrywide CEO Angelo Mozilo has agreed to a $67.5 million settlement to avoid trial on fraud and insider trading charges that alleged he profited from risky mortgages he signed off on before the collapse of the housing market. Show your readers how he EARNED that big money he got.
  • by snowman Location: farmville on Jul 30, 2011 at 08:47 AM
    BOA is much better at running a money laundering operation for their Mexican cartel clients than running a legitimate bank. I'll bet you have never heard any complaints from south of the border.
  • by Alison Location: Havelock on Jul 30, 2011 at 06:36 AM
    They both suck! We started out with countrywide and had nothing but problems and when BAC took over it became worse!
  • by uh Location: Greenville on Jul 30, 2011 at 06:02 AM
    What did you think was going to happen when banking and mortgage were deregulated?
  • by Anonymous on Jul 30, 2011 at 02:48 AM
    Angelo R. Mozilo, former CEO of Countrywide Financial Corp has settled with the Security and Exchange Commission and will to pay fines and forfeit ill-gotten gains in excess of $67 million...Now where are those people who said how CEOs DESERVE what they make? I know what this guy deserves...A criminal investigation of Mozilo remains open.
  • by pete Location: grifton on Jul 29, 2011 at 06:21 PM
  • by taxman Location: wilson on Jul 29, 2011 at 06:08 PM
    Go get those banksters down in Charlotte . Stick it to 'em, make 'em pay. Some of those BOA top executives need to spend time with Bernie and the rest of the gang, say 10 years or so. Bunch of no account white collar bankster bandits.
  • by 411 on Jul 29, 2011 at 05:42 PM
    Bank of America sucks. I had countrywide and had no problems,But when BAC took over it been a freakin nightmare.

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