Judge Strips Homeowners' Countrywide MBS Suit

Law360, Los Angeles (June 22, 2012, 9:04 PM EDT) -- A California judge on Friday gutted a lawsuit brought on behalf of hundreds of homeowners alleging Countrywide Financial Corp. concealed a scheme to sell artificially inflated mortgage-backed securities that caused their home values to plummet when the housing market crashed.

Judge William F. Highberger of California Superior Court in Los Angeles County eliminated nearly all claims leveled against the Bank of America Corp. subsidiary and more than 30 defendants, saying the thrust of the homeowners' complaint relied on a so-called show-me-the-note theory that has been rejected...
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