BofA Escapes Suit Over $17B In Countrywide MBS

Law360, New York (April 22, 2011, 3:24 PM EDT) -- A California federal judge on Wednesday dismissed all claims against Bank of America Corp. in a proposed class action that sought to hold the bank liable for the allegedly deceptive lending practices of former BofA unit Countrywide Financial Corp.

U.S. District Court Judge Mariana R. Pfaelzer dismissed the claims against BofA and a subsidiary because the plaintiffs failed to show that two separate transactions between the bank and Countrywide constituted a de facto merger, shielding the bank from successor liability, according to the order.

The plaintiffs,...
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