Investors Allege Massive Fraud By Countrywide
NEW YORK (AP) — A lawsuit alleges Countrywide Financial and two of its former executives misled institutional investors who bought mortgage-related investments that they claim were portrayed as low-risk.
The lawsuit was filed Monday in New York State Supreme Court by investors who bought hundreds of millions of dollars in Countrywide’s mortgage-backed securities from 2005 to 2007, before the housing market went bust. The list of a dozen plaintiffs includes New York Life Insurance and TIAA-CREF Life Insurance.
The complaint names based Countrywide, which was based in Calabasas, various subsidiaries, two former company executives, and Bank of America, which bought Countrywide in 2008.
A Bank of America spokeswoman says it appears large, sophisticated investors are looking to blame someone for losses caused largely by the recession.
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