Countrywide stockholders filed a complaint

New Countrywide Stockholder Suit

On March 10, 2011, several Countrywide stockholders filed a complaint against Countrywide Financial Corp., several of its former senior executives, and Countrywide’s independent auditor in the US District Court for the Central District of California. Plaintiffs, who previously opted out of a similar class action, allege that Defendants misled investors concerning the risks and quality of Countrywide’s loan portfolio, the sufficiency of its underwriting guidelines and internal controls, and Countrywide’s financial condition, all of which inflated Countrywide’s stock price and caused plaintiffs to suffer a loss. They assert claims against all defendants for violations of Sections 10(b) and 18 of the Exchange Act, SEC Rule 10b-5, and common law fraud. They also assert claims for violations of Section 20(a) of the Exchange Act against the individual defendants and for negligent misrepresentation against Countrywide and the individual defendants. Complaint.