American Fidelity Assurance Co. v. Countrywide Financial Corp., No. 11-361 (W.D. Okla. Apr. 1, 2011)

Institutional investor American Fidelity Assurance Company (“AFAC”) filed a complaint against Countrywide Financial, certain of its affliates, Bank of America, and variousformer executives of Countrywide, alleging that defendants sold AFAC approximately $48 million in RMBS pursuant to registration statements and prospectuses that contained untrue statements and omissions of material facts. AFAC asserts claims under Sections 11, 12(a)(2), and 15 of the ’33 Act and Sections 10(b) and 20(a) of the ’34 Act, in addition to claims for common law fraud and negligent misrepresentation. AFAC alleges that Countrywide systematically ignored its underwriting standards in order to increase its market share of mortgage products, and mislead plaintiff into believing it was buying highly rated and safe RMBS. Complaint.