This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America's Countrywide Pile On Mounts

Updated to include Bank of America comment.

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) has been hit with another major lawsuit stemming from its acquisition of Countrywide Financial in 2008.

The plaintiffs, which declined to participate in a $624 million settlement last year, include California Public Employees' Retirement System and funds managed by BlackRock (BLK - Get Report), T Rowe Price Group (TROW - Get Report) and TIAA-CREF claim Countrywide misled investors about the degree of risk it was taking on, according to a court filing.

Bank of America's $4.2 billion acquisition of Countrywide will probably end up costing it more than $25 billion, due to legal fallout and plummeting asset values, FBR Capital Markets analyst Paul Miller told TheStreet earlier this month .

The complaint was filed in a Los Angeles federal court on Thursday.

"It is unfortunate that select investors chose to opt-out of a fair and equitable agreement to settle these issues. We intend to vigorously defend these claims," wrote a Bank of America spokesman in an email.

-- Written by Dan Freed in New York.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $11.95 0.00%
BLK $306.80 0.00%
TROW $67.55 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs