BofA, Countrywide Dodge Subprime Securities Suit

Law360, New York (September 29, 2010, 7:01 PM EDT) -- Bank of America Corp. and its subsidiary Countrywide Financial Corp. have won dismissal of a mortgage-backed securities suit claiming the banks failed to warn investors that they were issuing risky subprime home loans to borrowers with sketchy credit histories.

Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York ruled on Tuesday that the banks did not commit fraud because they sufficiently cautioned the plaintiffs – investors in two trusts – about the volatile nature of the securities in several...
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