Allocation Plan Needed In $500M Countrywide MBS Deal

Law360, Los Angeles (July 10, 2013, 7:32 PM ET) -- A California federal judge Wednesday refused to give preliminary approval to a $500 million settlement of three putative class actions challenging Countrywide Financial Corp.'s underwriting standards for mortgage-backed securities, saying she needed more information on how the settlement would be divided among investors.

Senior U.S. District Judge Mariana R. Pfaelzer said at a hearing that she couldn't say “the allocation is fair, just and reasonable because I don't know how it works. I am lacking that kind of information.”

She ordered lawyers in the case to...
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