New York Expands Countrywide Class Action Suit

Today, New York City and state expanded their class action lawsuit against Countrywide Financial Corp. to include two more company officers, twenty underwriters (including big investment banks like Goldman Sachs, J.P. Morgan and Merrill Lynch), and two accounting firms. “We will pursue every avenue to ensure that those who defrauded investors are held accountable for their actions,” said the NYC Comptroller.

Executives of Countrywide “cashed out to the tune of almost $700 million” while borrowers lost homes and the value of investors’ shares fell sharply, [NYC Comptroller] Thompson said in a statement.

“Countrywide’s underwriters had a duty to investigate whether Countrywide was acting honestly,” [NY State Comptroller] DiNapoli said. “Instead, the underwriters and accountants enabled Countrywide to release false statements.”

“NY expands Countrywide suit with more defendants” [Reuters]
(Photo: sbfisher)

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  1. headon says:

    payback’s a bitch

    • Anonymous says:

      I agree. They threw my wife and I under the bus. We sent them $3000.00 so we could get a mod or something. They said if we sent in the money on time, which we did, they would work with us.
      Well, guess what we recieved ths weekend by cerftified mail during my 4 year olds birthday….. A Notice of Acceleration. Yep they are now telling us that is they do not get $7,000 by 1/2/09 they will start to foreclose. WOW! Less than 30 days to come up with the cash. Oh yea, I was “Down sized” in August…..

  2. goodkitty says:

    I wonder when (or if) the mass public will realize that this “recession” isn’t just one of those bad economic weather days, and the result of a systematic scheme by big corps, executives, and the politicians in their collective pocket, to defraud everyone.

    I wonder what would happen then? Oh yeah, the gov’t gives everyone a few hundred bucks worth of hush money.

  3. BrianH says:

    I hope all those cigar-chomping fatcats end up in a prison cell with a cellmate named Bruno.

  4. Tracy Ham and Eggs says:

    Or, this lawsuit will put money in the pockets of the government, the investors, and primarily the lawyers. The borrowers will get nothing.

  5. Angryrider says:

    I hate those $@!$!$^%^!!%$^% bailouts. There’s always a huge payoff when something goes horribly wrong.