|[December 06, 2013]
Federal Court Approves $500 Million Countrywide MBS Settlement Agreement
WASHINGTON --(Business Wire)--
A federal court today granted approval of a $500 million settlement
agreement between investors and Countrywide Financial Corp. and others.
The landmark mortgaged-back securities (MBS) class action was led by the
Iowa Public Employees Retirement System (IPERS), represented by Cohen
Milstein Sellers & Toll PLLC.
In granting approval of the nation's largest MBS class action
settlement, the U.S. District Court for the Central District of
California, brought to a close the consolidated class action lawsuit
filed in 2010 by multiple retirement funds against Countrywide and other
defendants for securities violations involving the packaging and sale of
MBS. Bank of America acquired Countrywide in 2008.
"We are delighted to have secured the nation's largest MBS class action
settlement on behalf of Countrywide investors," said Plaintiffs' Lead
Counsel Steven J. Toll of Cohen Milstein Sellers & Toll PLLC.
The case involved llegations that the Plaintiffs and other investors
were sold billions of dollars worth of MBS certificates backed primarily
with defective Countrywide-originated loans. By late 2008, virtually all
of those certificates were downgraded to junk bond status.
Class representatives from the Maine State litigation that were
involved in the 429 Countrywide-sponsored offering settlement include
the Iowa Public Employees' Retirement System (IPERS), which was
appointed lead plaintiff by the U.S. District Court, Central District of
California, in May 2010; as well as the Oregon Public Employee
Retirement Fund; the Orange (News - Alert) County Employees' Retirement System; and the
General Board of Pension and Health Benefits of the United Methodist
In addition to Toll, counsel for the Plaintiffs in Maine State
Retirement System et al., v. Countrywide Financial Corp., et al.,
include Julie Goldsmith Reiser and Daniel Rehns of Cohen Milstein
Sellers & Toll PLLC. Involved also in the settlement are the David
H. Luther v. Countrywide Financial Corp., et al., and Western
Conference of Teamsters Pension Trust Fund v. Countrywide Financial
Corp., et al., actions.
For more information about the case, visit http://www.cohenmilstein.com/cases/224/countrywide-mortgage-backed-securities-mbs-litigation.
EDITOR'S NOTE: Copy of the Court Order Available
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