BofA Sued by BlackRock, Calpers Over Countrywide Fraud Claims
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Bank of America Corp., the biggest U.S. lender, faces a new securities-fraud lawsuit filed by former Countrywide Financial Corp. investors including BlackRock Inc. that opted out of a $624 million settlement last year.
Countrywide, acquired by Bank of America in 2008, misled shareholders about its finances and lending practices, according to the complaint filed today in federal court in Los Angeles. Plaintiffs including the California Public Employees’ Retirement System and funds managed by BlackRock, T. Rowe Price Group Inc. and TIAA-CREF are the largest group of those who rejected the deal, saying the terms were inadequate.