On November 9, 2011, National Integrity Life Insurance Co. filed a complaint against Countrywide Financial Corporation, former Countrywide executives and Bank of America in the United States District Court for the Southern District of New York, accusing Countrywide of fraud and misstatements in connection with nearly $450 million in RMBS allegedly purchased by the insurer. National Integrity alleges Countrywide abandoned its underwriting standards and misled the insurer about the quality of loans underlying the securities. National Integrity asserts causes of action for common law fraud, civil conspiracy, and violations of the Ohio Securities Act, the Ohio Corrupt Activities Act and federal securities laws, including Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) and 20(a) of the Exchange Act of 1934. Complaint.
Exchange Act of 1934
Derivative Suit Against Bank of America Alleges Failures in Mortgage Servicing
On July 22, 2011, shareholders of Bank of America sued the corporation and certain of its executives in a derivative suit in the District of Massachusetts, claiming breach of fiduciary duty and violation of certain provisions of the Exchange Act of 1934. The complaint identifies numerous problems Bank of America had encountered in the past few months, including a lawsuit brought against the bank by homeowners and an April 2011 report by the Office of the Comptroller of Currency finding that Bank of America conducted improper servicing, did not maintain adequate internal controls, and lacked sufficient resources to oversee the foreclosure administration process. The complaint alleges that the bank and its executives knew the problems existed but wasted money defending their policies. The complaint seeks restitution from executives, corporate governance changes, and the submission of various proposals for shareholder vote. Complaint.