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Countrywide Financial Corporation Summary: In a press release dated January 28, 2008, Plaintiffs in a securities class action lawsuit against Countrywide Financial Corp. added 26 banks and two accounting firms to the already long list of defendants in the case on Friday, saying that the firms failed to protect Countrywide's investors while underwriting the bankrupt mortgage lender.
According to a press release dated December 3, 2007, New York State Comptroller Thomas DiNapoli and New York City Comptroller William Thompson were named the lead plaintiffs in a class-action lawsuit against Countrywide Financial, the largest U.S. mortgage lender. The comptrollers have chosen the law firm Labaton Sucharow LLP to represent the plaintiffs.
The original complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
Specifically, according to the complaint, during the Class Period, defendants made false and misleading statements regarding the changing quality of the Company's mortgage loan portfolio. As late as April of 2007, the Company stated that credit rating agency Moody's upgraded the rating of the Company's banking segment and announced that its home loans segment was also under review for possible upgrade. Then, on June 12, 2007, the Company boasted of its position as the number one mortgage originator in the United States. These reassuring announcements served to conceal the alarming growth of loan delinquencies and the increasing likelihood of impairment charges, with resulting adverse impacts on the quality of the Company's collateralized debt obligations (CDO's), earnings and profits.
The complaint further alleges that on July 24, 2007, the Company finally announced the shocking news, of over $417 million in impairment charges and implementation of a $292.9 million loan loss provision. On the news, the price of Countrywide Financial stock tumbled 10.4%, closing at $30.50 per share. Following this, on August 9, 2007, within four days of reassuring statements that purported the reliability and availability of liquidity to meet short-term needs, the Company adopted a new risk disclosure, warning of short-term liquidity issues. As a result, on that day, the price of Countrywide Financial stock fell again, losing $1.00 or 3.4%, to close at $27.86 per share, on heavy volume of over 48.6 million shares.
On April 11, 2008, Lead Plaintiff filed a Consolidated Amended Class Action Complaint. Defendants filed numerous and separate motions for dismissal on June 10. The judge granted in part, denied in part the pending motions on December 1, providing plaintiffs 20 days to file an amended complaint.
A Second Consolidated Complaint was filed January 7, 2009 addressing previous deficiencies in the complaint.
On April 06, 2009, an order was granted dismissing the insider trading allegations against certain individual defendants whose trading plans were in order. However, the judge refused to dismiss the insider trading allegations against Countrywide CEO.
INDUSTRY CLASSIFICATION:
SIC Code: 6035
Sector: Financial
Industry: Consumer Financial Services
| COMPANY/ISSUER NAME: | Countrywide Financial Corporation |
| COMPANY/ISSUER TICKER: | CFC |
| COMPANY WEBSITE: | http://www.countrywide.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| George Pappas, et al. v. Countrywide Financial Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of theFederal Securities Laws - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 08/14/2007 | ||
| Order Consolidating Cases and Appointing Lead Plaintiff and Lead Counsel | |||
| Type: Order | Date on the document: 11/28/2007 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| George Pappas, et al v. Countrywide Financial Corp, et al | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 4/11/2008 | ||
| Omnibus Order On The Defendants' Motions To Dismiss The Consolidated Amended Complaint And All Pending Requests For Judicial Notice | |||
| Type: Complaint | Date on the document: 12/01/2008 | ||
| Second Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 01/07/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 1/12/2009 | ||
| Omnibus Order on Motions Related to the Second Amended Complaint and the Unopposed Motion to Correct the Order of December 1, 2008 | |||
| Type: Order | Date on the document: 04/06/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Joel Abrams, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Complaint | Date on the document: 08/20/2007 | ||
| Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Norfolk County Retirement System, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Complaint | Date on the document: 08/31/2007 | ||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Jack McBride, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Complaint | Date on the document: 09/19/2007 | ||
| Complaint | |||
| Case Name and/or Number: Diana Wingard, et al. v. Countrywide Home Loans, et al. | |||
| Type: Complaint | Date on the document: 10/9/2007 | ||
| Shareholder Derivative Complaint - Demand for Jury Trial | |||
| Case Name and/or Number: Arkansas Teacher Retirement System, et al. v. Mozilo, et al. | |||
| Type: Complaint | Date on the document: 10/24/2007 | ||
| Securities Class Action Complaint for Violation of Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Barry Brahn, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Complaint | Date on the document: 11/05/2007 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: Marsha Steele, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Docket | Date on the document: 11/16/2007 | ||
| Notice Of Removal | |||
| Case Name and/or Number: David H. Luther, et al v. Countrywide Financial Corp, et al | |||
| Type: Notice | Date on the document: 12/14/2007 | ||
| Memorandum Of Points And Authorities In Support Of Plaintiff's Motion For Remand To State Court And An Award Of Attorneys' Fees Expenses | |||
| Case Name and/or Number: David H. Luther, et al. v. Countrywide Financial Corporation, et al. | |||
| Type: Other | Date on the document: 1/10/2008 | ||
| Order Granting Plaintiff's Motion For Remand To State Court And Denying An Award Of Attorney's Fees And Expenses | |||
| Case Name and/or Number: David H. Luther, et al v. Countrywide Financial Corp, et al | |||
| Type: Order | Date on the document: 02/28/2008 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: David H. Luther, et al. v. Countrywide Home Loans Servicing LP, et al. | |||
| Type: Docket | Date on the document: 6/5/2008 | ||
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