MassMutual, Countrywide MBS Row Limited To Underwriters

Law360, New York (April 17, 2012, 3:41 PM EDT) -- A California federal judge on Monday trimmed a suit brought by Massachusetts Mutual Life Insurance Co. against Countrywide Financial Corp. as part of multidistrict litigation over allegedly faulty mortgage-backed securities certificates, ruling that only underwriter defendants in the case were potentially liable.

Under Massachusetts law — which applies because the suit was moved from Massachusetts to California as part of an MDL against Countrywide over mortgage-backed securities it issued — only the person who offered or sold the security is liable to the purchaser, U.S. District...
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