Bank of America's Countrywide Pile On Mounts

Updated to include Bank of America comment.

NEW YORK ( TheStreet) -- Bank of America ( BAC) 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), T Rowe Price Group ( TROW) 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.

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