Allstate Insurance Co. filed a federal lawsuit against Countrywide Financial Corp. late last month, seeking damages related to its purchases of more than $700 million in mortgage-backed securities from the company, now owned by Bank of America.
Allstate alleges that between March 2005 and June 2007, as it was buying the securities, Countrywide "abandoned its underwriting standards, misrepresented crucial information about the underlying mortgage loans and concealed material facts" from the insurer, it said in a statement.
The lawsuit filed in the Southern District of New York in Manhattan names Bank of America and Angelo Mozilo as defendants. Mr. Mozilo is Countrywide's co-founder and was its chief executive officer. Other former officers, directors and executives are also named as defendants.
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