$272M MBS Suit Can't Tie Countrywide To Sales, Judge Hears

Law360, Los Angeles (March 13, 2013, 7:05 PM EDT) -- Countrywide Financial Corp. urged a California federal judge Wednesday to throw out a proposed class action alleging the company misled buyers of $272 million in mortgage-backed securities, arguing that pensions and individual investors lack standing because they can't prove they bought the ill-fated securities from Countrywide.

In a two-hour hearing before Senior U.S. District Judge Mariana R. Pfaelzer, lawyers representing Countrywide said the plaintiffs, specifically investors David H. Luther and the Western Conference of Teamsters Pension Trust Fund, put forth pleadings that were so flawed that...
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