Pension Funds Bolster MBS Case Against Countrywide

Law360, New York (July 15, 2010, 5:16 PM EDT) -- Purchasers of Countrywide Financial Corp.'s mortgage-backed securities have fleshed out claims that the mortgage lender and 16 underwriters ran afoul of securities laws in publishing offering documents that allegedly hid their underwriting practices.

Four pension funds filed an amended consolidated class action complaint Tuesday in the U.S. District Court for the Central District of California, setting the stage for the parties to proceed with a case that was first filed in state court in 2007.

The suit claims Countrywide, now part of Bank of America Corp.,...
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