Most Claims Cut In Countrywide Insurance Fraud Suit

Law360, New York (October 6, 2009, 4:12 PM EDT) -- A federal judge has tossed the bulk of claims brought by an American International Group Inc. mortgage insurer in a suit accusing Countrywide Financial Corp. of fraud, breach of contract and negligence over insurance policies it took out for subprime mortgage securities.

Judge Mariana R. Pfaelzer of the U.S. District Court for the Central District of California nixed five of seven claims levied by United Guaranty Mortgage Indemnity Corp. against Countrywide, leaving only breach of contract and breach of good faith claims standing.

At issue in...
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