Allstate Sues Countrywide Over $700 Million Investment
Bloomberg, Dec. 28, 2010
December 27, 2010 at 07:00 PM
3 minute read
The original version of this story was published on Law.com
Allstate Corp. sued Bank of America Corp. and its Countrywide mortgage unit over $700 million in residential mortgage-backed securities the insurer purchased, claiming Countrywide misrepresented the investments.
“The defendants knew the loans offloaded onto Allstate were a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default,” Allstate said in a complaint filed in federal court in Manhattan yesterday.
Allstate, based in Northbrook, Illinois, said in the complaint that the mortgage-backed securities, purchased from March 2005 to June 2007, suffered “drastic and rapid loss in value” when large numbers of homeowners began to default on their mortgages.
The suit, which seeks unspecified damages, alleges fraud, negligent misrepresentation and violation of U.S. securities laws. In addition to Bank of America and Countrywide, Allstate names as defendants former Countrywide officials including former chairman and chief executive officer, Angelo Mozilo.
Read the complete Bloomberg article, “Allstate Sues Countrywide Over $700 Million Investment.”
Allstate Corp. sued
“The defendants knew the loans offloaded onto Allstate were a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default,” Allstate said in a complaint filed in federal court in Manhattan yesterday.
Allstate, based in Northbrook, Illinois, said in the complaint that the mortgage-backed securities, purchased from March 2005 to June 2007, suffered “drastic and rapid loss in value” when large numbers of homeowners began to default on their mortgages.
The suit, which seeks unspecified damages, alleges fraud, negligent misrepresentation and violation of U.S. securities laws. In addition to
Read the complete Bloomberg article, “Allstate Sues Countrywide Over $700 Million Investment.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
‘Extremely Disturbing’: AI Firms Face Class Action by ‘Taskers’ Exposed to Traumatic Content
5 minute read
In-House Lawyers Are Focused on Employment and Cybersecurity Disputes, But Looking Out for Conflict Over AI
Trending Stories
- 1New York-Based Skadden Team Joins White & Case Group in Mexico City for Citigroup Demerger
- 2No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 3Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 4Meet the New President of NY's Association of Trial Court Jurists
- 5Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
