Countrywide Mortgage-Backed Securities Certificate Investor Lawsuit

If you invested in the below stated mortgage-backed securities, you have certain options and there are strict and short deadlines running. Deadline: April 01, 2010. Those shareholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Countrywide Financial Corporation
Case Name: 
Countrywide Financial Corporation Class Action 01/14/2010
Case Status: 
Lawsuit Filed
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/14/2010
Class Period End: 
01/14/2010
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
03/15/2010
Summary: 

An investor has filed a lawsuit in the United States District Court for the Central District of California on behalf of investors of certain mortgage-backed securities (Alternative Loan Trust Certificates issued by CWALT, Inc., certain CWABS Asset-Backed Trust Certificates issued by CWABS, Inc., certain CHL Mortgage Pass-Through Trust Certificates issued between 2005 and 2006 by CWMBS, Inc., and certain CWHEQ Revolving Home Equity Loan Trusts and Home Equity Loan Trusts issued by, CWHEQ, Inc.) sponsored by affiliates of Countrywide Financial Corporation and its wholly-owned subsidiary Countrywide Home Loans, Inc. and related trusts, issued between 2005 and 2007.

The lawsuit was filed on behalf of investors who purchased or otherwise acquired the following certificates,

- 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.,
and
- CWHEQ Revolving Home Equity Loan Trusts and Home Equity Loan Trusts issued by, CWHEQ, Inc.

, who purchased pursuant or traceable to the following registration statements filed with the U.S. Securities and Exchange Commission:

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.