New York Expands Countrywide Securities Fraud Suit; Names 26 Underwriters as Defendants

[ursi]

New York city and state officials expanded their shareholder class-action suit against Countrywide Financial Corp. on Friday, expanding the legal fray to include 26 different financial services companies that underwrote Countrywide stock and bond offerings, two global accounting firms, and additional Countrywide officers and directors who signed SEC filings on behalf of the company.

“The actions of Countrywide and its underwriters created a situation in which, when the company’s stock and bond prices fell, it was investors, and not the company’s executives, that sustained heavy losses,” said New York City Comptroller William C. Thompson, Jr., who helps run the city’s pension funds.

“We will pursue every avenue to ensure that those who defrauded investors are held accountable for their actions.”

Both Thompson and New York State Comptroller Thomas DiNapoli, who is the sole trustee New York’s $154.5 billion Common Retirement Fund, are lead plaintiffs in the securities fraud suit. Both the city and state funds have lost millions of dollars as Countrywide’s stock has fallen dramatically during the mortgage industry bust.

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http://www.housingwire.com/2008/01/25/new-york-expands-countrywide-securities-fraud-suit-names-26-underwriters-as-defendants/