The D&O Diary

The D&O Diary

A PERIODIC JOURNAL CONTAINING ITEMS OF INTEREST FROM THE WORLD OF DIRECTORS & OFFICERS LIABILITY, WITH OCCASIONAL COMMENTARY

Tag Archives: Countrywide

Countywide MBS Securities Suit Settles for $500 Million

Posted in Subprime Litigation
In what is the largest settlement so far of an mortgage-backed securities class action lawsuit filed as part of the subprime and credit-crisis securities litigation wave, the parties to the consolidated Countrywide mortgage-backed securities suit pending in the Central District of California have agreed to settle the litigation for $500 million. The settlement is subject … Continue Reading

Are Securities Class Action Opt-Out Actions Back?

Posted in Opt-Outs
Settlement opt-outs have been always been a feature of securities class action litigation. However, as part of the settlements of the huge cases filed during the era of corporate scandals at the beginning of the last decade, opt outs became more prevalent and they represented an increasingly significant part of the case resolution. Many of … Continue Reading

So, There’s Concurrent State Court Jurisdiction for ’33 Act Suits, Right? Well…

Posted in Securities Litigation
On May 18, 2011, the California Intermediate Court of Appeals held in the Luther v. Countrywide Financial Corporation case that state courts have concurrent jurisdiction with federal courts to hear liability lawsuits under the Securities Act of 1933, and that more recent legislative enactments did not eliminate the concurrent state court jurisdiction for the plaintiffs’ … Continue Reading

Countrywide Reportedly Settles Subprime-Related Securities Lawsuit for $600 Million

Posted in Subprime Litigation
In the largest subprime-related securities suit settlement to date, Countrywide Financial has reached an agreement to pay $600 million to settle the securities class action pending against the company and certain of its directors and officers, according to an April 23, 2010 article by Gabe Friedman in The Daily Journal (here, subscription required). The settlement reportedly … Continue Reading

Countrywide Settles Subprime-Related ERISA Lawsuit

Posted in ERISA, Subprime Litigation
In a noteworthy subprime-related litigation development, on August 5, 2009, the parties to the Countrywide ERISA action filed a stipulation of settlement (here), together with a request for preliminary court approval. Under the stipulation, the case is to be settled by a payment of $55 million, to be funded entirely by Countrywide’s fiduciary liability insurers. … Continue Reading

What Does The SEC’s Enforcement Action Against Countrywide’s Mozilo Signify?

Posted in Securities Litigation, Subprime Litigation
In its most significant enforcement action yet related to the subprime meltdown, on June 4, 2009, the SEC filed a civil securities fraud complaint (here) in the Central District of California against Angelo Mozilo, the former CEO of Countrywide Financial Corp., as well as the company’s former COO and CFO. The complaint alleges that the … Continue Reading

Countrywide Securities Suit Dismissal Motions Substantially Denied

Posted in Subprime Litigation
On December 1, 2008, in a massive, detailed 112-page opinion (in three parts, here, here and here), Central District of California District Judge Mariana R. Pfaelzer substantially denied the defendants’ motions to dismiss the Countrywide subprime-related securities class action lawsuit.   Background regarding the case can be found here. The consolidated amended complaint can be … Continue Reading

Countrywide Delaware Derivative Lawsuit Dismissed; What Happens Next?

Posted in Subprime Litigation
On October 7, 2008, in a decision that could affect other litigation relation to Countrywide Financial, Judge Sue Robinson dismissed the consolidated shareholders’ derivative lawsuit pending in Delaware federal court against the company, as nominal defendants, and ten of its former directors and officers. A copy of the October 7 opinion can be found here. … Continue Reading

Dismissal Denied in Countrywide Financial Subprime Derivative Lawsuit

Posted in Subprime Litigation
In the most in-depth review yet of a subprime-related lawsuit complaint, Judge Mariana Pfaelzer of the Federal District Court in Los Angeles, in an order dated May 14, 2008 (here), denied the defendants’ motions to dismiss the amended complaint in the consolidated derivative lawsuit filed against Countrywide Financial, as nominal defendant, and against eleven individual … Continue Reading