Last month, several Bank of America investors filed suit against the bank claiming that Countrywide Financial Corp. misled investors about their transition from being a traditional lender to a high-risk lender.
Investors involved in the lawsuit include the California Public Employees’ Retirement System, BlackRock Inc., the Montana Board of Investors, and 13 more. In the lawsuit, investors declare, “Beginning in 2003, Countrywide changed its business model to originate as many loans as possible by increasingly producing subprime, nontraditional and risky loans while disregarding its underwriting standards.”
The lawsuit is seeking hundreds of millions of dollars from the bank. Officials say the lawsuit will be dependent on testimonies from former Countrywide employees verifying that they intentionally downplayed their shift to being a high-risk lender.
Contact the Orange County business litigation lawyers of Daily Aljian at 949-861-2524 today, if you or someone you know is seeking the help of an experienced business litigation attorney.