Updated to include Bank of America comment.
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.