Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check, LLP Announce Countrywide to Pay $500 Million to Settle

  Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check, LLP
  Announce Countrywide to Pay $500 Million to Settle Mortgage-Backed
  Securities Case

Business Wire

SAN DIEGO -- April 17, 2013

Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check, LLP
announce defendant Countrywide Financial Corporation (“Countrywide”) has
agreed to pay $500 million in cash to resolve three federal securities
class-action lawsuits arising out of the sale of Countrywide Mortgage-Backed
Securities (“MBS”). The longest standing of the three matters, Luther v.
Countrywide Fin. Corp.,  No. 12-cv-05125-MRP-MAN, is pending in the Central
District of California, before the Honorable Mariana A. Pfaelzer.

The lead plaintiffs in the Luther matter are the State of Vermont’s Employee
Pension Funds, Maine State Retirement System, Pension Trust Fund for Operating
Engineers, Washington State Plumbing & Pipefitting Pension Trust, and Mashreq
Bank. The plaintiffs in the Luther matter, which commenced in 2007, assert
claims under the Securities Act of 1933 (the “Securities Act”), and allege
that the MBS offering documents materially misrepresented and omitted to
disclose material facts concerning the quality of the loans underlying the
MBS. The matter further alleges that when information pertaining to the loans
materialized, the value of the MBS declined, damaging investors.

If approved by the court, the half-billion dollar settlement will represent
the largest MBS class action recovery under the Securities Act in history. The
law firms of Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) and Kessler
Topaz Meltzer & Check, LLP (“Kessler Topaz”) serve as co-lead counsel to the
class in the Luther matter and helped to secure the historic settlement. “This
record-breaking recovery is a tremendous result for MBS investors,” said
Spencer A. Burkholz, a partner at Robbins Geller. Andrew Zivitz, a partner at
Kessler Topaz, added, “This precedent-setting settlement reflects our
continued commitment to protect investors’ rights.”

The settlement was achieved after more than five years of hard-fought
litigation. The extensive settlement discussions were conducted with the
assistance of mediator Professor Eric Green, who has more than 30 years of
experience mediating complex litigations.

In addition to the Luther matter, 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.).

Contact:

Robbins Geller
Spencer A. Burkholz
619-231-1058 or 619-571-2480
or
Kessler Topaz
Andrew L. Zivitz
610-667-7706
 
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