BofA Wins Dismissal in Allstate Countrywide Securities Suit
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Bank of America Corp. won dismissal from Allstate Corp.’s lawsuit over the insurer’s alleged losses from $700 million in mortgage-backed securities purchased from Countrywide Financial Corp.
Bank of America, as a corporate parent, isn’t responsible for the liabilities of Countrywide, the mortgage lender it acquired in 2008, U.S. District Judge Mariana Pfaelzer in Los Angeles ruled yesterday. The judge found that the evidence Allstate provided wasn’t sufficient to support its allegations that Bank of America set out to defraud Countrywide’s creditors.