Countrywide Mortgage-Backed Securities Certificate Investor Lawsuit
December 5, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
August 7, 2013 - The court preliminarily approved the settlement.
July 9, 2013 - Parties filed a stipulation of settlement.
September 13, 2011 - The court denied the defendants' motions to dismiss.
July 11, 2011 - The defendants filed motions to dismiss.
June 6, 2011 - The lead plaintiff filed a third amended complaint.
February 16, 2011 - The court granted the dismissal of three individual defendants with prejudice.
December 6, 2010 - The lead plaintiff filed a second amended complaint.
November 4, 2010 - The court granted the defendants motions to dismiss without prejudice and granted lead plaintiff leave to file an amended complaint.
August 16, 2010 - The defendants filed motions to dismiss.
July 13, 2010 - The lead plaintiff filed an amended complaint.
May 14, 2010 - The lead plaintiff and lead counsel were appointed.
April 2, 2010 - Lead plaintiff motions were filed.
January 14, 2010 - An investor in mortgage-backed securities sponsored by affiliates of Countrywide Financial Corporation and its wholly-owned subsidiary Countrywide Home Loans Inc and related trusts, issued between 2005 and 2007 has filed a lawsuit in the U.S. District Court for the Central District of California against Countrywide Financial Corporation on behalf of investors who purchased or otherwise acquired the following certificates purchased pursuant or traceable to certain registration statements filed with the U.S. Securities and Exchange Commission.
- Alternative Loan Trust Certificates issued by CWALT Inc
- CWABS Asset-Backed Trust Certificates issued by CWABS Inc
- CHL Mortgage Pass-Through Trust Certificates issued between 2005 and 2006 by CWMBS Inc
- CWHEQ Revolving Home Equity Loan Trusts and Home Equity Loan Trusts issued by CWHEQ Inc
The registration statements referenced above filed with the U.S. Securities and Exchange Commission are listed below:
333-110343, 333-100418, 333-118926, 333-117949, 333-121249, 333-125164, 333-123167, 333-125963, 333-131591, 333-125902, 333-131662, 333-135846, 333-131630, 333-140958, 333-140960, 333-140962, 333-121378, 333-126790, 333-132375, 333-139891.
According to the complaint the plaintiff alleges violations of the Securities Act of 1933 by issuing the above named certificates that contained materially false and misleading statements and omitted material information in violation of Sections 11, 12(a)(2) and 15 of the Securities Act. The complaint alleges various misrepresentations and omissions as to the underwriting practices employed in originating the mortgages, the sufficiency of the collateral and the appraisal practices used to support the mortgages.
The plaintiff alleges that as a result of the material misrepresentations and omissions in the Registration Statements and Prospectus Supplements, investors purchased securities that were far riskier than represented.
According to the complaint, by mid-2007 the mortgages held by the issuing trusts and underlying the certificates began suffering accelerating delinquencies and defaults.
The complaint, among other things, alleges that defendants could have and should have discovered the material misstatements and omissions in the Company's Prospectus Supplements prior to their filing with the SEC and distribution to the investing public. Instead, they failed to do so as a result of a negligent and inadequate due diligence investigation, so the plaintiff.
Plaintiffs seek to recover damages on behalf of all purchasers of the above stated certificates issued between 2005 and 2007.