BofA Escapes Allstate Suit Over Countrywide Liability

Law360, New York (February 3, 2012, 6:25 PM EST) -- A California federal judge on Thursday dismissed Allstate Insurance Co.'s case alleging Bank of America Corp. schemed to hinder Countrywide Financial Corp. creditors by obtaining the troubled financial company and stripping its assets.

U.S. District Judge Mariana R. Pfaelzer dismissed with prejudice one count each of successor and vicarious liability, intentional fraudulent conveyance and constructive fraudulent conveyance, saying Allstate had not proven any of the claims.

One claim of common law fraud against Countrywide, which Bank of America acquired in 2008, remains alive.

Allstate alleged that...
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