Allstate's Federal Claims Nixed In Countrywide MBS Suit

Law360, New York (October 24, 2011, 9:14 PM EDT) -- A California federal judge on Friday said Allstate Insurance Corp. couldn't pursue federal claims against Countrywide Financial Corp. over a $700 million purchase of toxic mortgage-backed securities, but allowed the insurer's state law claims to go forward.

U.S. District Judge Mariana R. Pfaelzer said Allstate's Securities Act and Exchange Act claims were time-barred because the insurer bought the MBS from Countrywide more than three years before it launched its suit in December.

The judge rejected Allstate's argument that it couldn't have been aware of any alleged...
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