Countrywide Loses Bid To Trim $2.6B MBS Class Action

Law360, New York (September 15, 2011, 3:06 PM EDT) -- A California federal judge on Tuesday denied Countrywide Financial Corp.'s bid to toss part of a class action by mortgage-backed securities purchasers who say Countrywide defrauded them through nine separate offerings collectively sold for $2.6 billion.

Countrywide had asked the court to dismiss claims concerning three of the nine offerings, saying the plaintiffs' complaint alleged they purchased the securities before Countrywide's prospectus supplements were issued, preventing the plaintiffs from claiming they relied on alleged misrepresentations in those supplements.

But U.S. District Judge Mariana R. Pfaelzer ruled...
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