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
Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check, LLP Announce Countrywide to Pay $500 Million to Settle
Press spacebar to pause and continue. Press esc to stop.