Robbins Geller Rudman & Dowd LLP Announces Countrywide to Pay $500 Million
to Settle Mortgage-Backed Securities Case
The half-billion dollar settlement is the largest ever MBS class action
SAN DIEGO -- April 17, 2013
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) announces Countrywide
Financial Corporation (“Countrywide”) has agreed to pay $500 million to
investors who allege that they were misled by the company’s sale of
mortgage-backed securities (“MBS”) from 2005 to 2007. If approved by the
court, the half-billion dollar settlement will represent the largest MBS class
action recovery in history.
The plaintiffs in the case accused Countrywide, which was subsequently
acquired by Bank of America, of making false claims regarding the quality of
loans underlying billions of dollars of MBS issued and/or sold by Countrywide.
Robbins Geller fought defendants’ repeated attempts to remove the case to
federal court, which included appeals to both the California Supreme Court
(where review was denied) and the U.S. Supreme Court (where certiorari was
“This landmark case was the first MBS class action brought against the MBS
originators and Wall Street banks responsible for issuing defective
securities,” said Spencer A. Burkholz, partner at Robbins Geller. “After five
years of hard-fought litigation, this record-breaking recovery is a tremendous
result for MBS investors misled by Countrywide and its underwriters in
connection with the packaging and sale of MBS.”
The settlement in this enormously complex case was achieved with the
assistance of mediator Professor Eric Green and included attendance at
mediation sessions by lead plaintiffs the State of Vermont’s Employee Pension
Funds and Pension Trust Fund for Operating Engineers. Other lead plaintiffs
include Maine State Retirement System, Washington State Plumbing & Pipefitting
Pension Trust, Mashreq Bank, and David Luther.
The case, Luther v. Countrywide Fin. Corp., No. 12-cv-05125-MRP-MAN, was
filed in the Central District of California. Robbins Geller and Kessler Topaz
Meltzer & Check, LLP are co-lead counsel for the plaintiffs. The settlement
also involves the resolution of two other cases – Western Conference of
Teamsters Pension Plan v. Countrywide Fin. Corp., No. 12-cv-05122-MRP-MAN
(C.D. Cal.), and Maine State Ret. Sys. v. Countrywide Fin. Corp., No.
10-cv-00302-MRP-MAN (C.D. Cal.).
Robbins Geller is co-lead counsel in this record-breaking recovery and
represents hundreds of institutional investors in the United States and around
the globe in contingency-based securities and corporate litigation. The firm
is appointed to serve as sole lead counsel by district courts more often than
any other plaintiffs’ securities firm and has been ranked first in the number
of shareholder class action recoveries in MSCI’sTop SCAS 50 every year for
the last decade. Please visit www.rgrdlaw.com for more information.
Spencer A. Burkholz
619-231-1058 or 619-571-2480
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