Countrywide Class Action Sent Back To Calif. Court

Law360, New York (July 16, 2008, 12:00 AM EDT) -- A federal appeals court has ruled that a class action linked to the collapse of mortgage-backed securities issued by a subsidiary of Countrywide Financial Corp. can proceed in California state court.

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit ruled Wednesday that the suit should proceed in Los Angeles County Superior Court. Under the Securities Act of 1933, federal and state courts both have jurisdiction over securities lawsuits.

The Class Action Fairness Act has a stipulation that any class action seeking...
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