Bank of America Corp.’s Countrywide continues to be a thorn in its side. Bank of America acquired Countrywide in 2008 and the mortgage unit has faced countless lawsuits accusing it of misleading investors about its finances and lending practices.
The latest lawsuits come from the states of Michigan and Oregon and Fresno County, Calif., and more lawsuits are expected on their way.
Bank of America said it expects an additional $6.1 billion of write-downs and legal costs from Countrywide.
Last year the bank agreed to a $624 million settlement to resolve a similar class-action lawsuit against Countrywide.
However, some investors opted out of the class-action settlement, likely believing they could get higher recoveries by suing on their own.
It is unfortunate that select investors chose to opt out of a fair and equitable agreement to settle these issues,” Shirley Norton, a Bank of America spokeswoman, said in a statement. “We intend to vigorously defend these claims.
Source: “Lawsuits Mount for BofA’s Countrywide,” Reuters News (Jan. 28, 2011)