Countrywide loses bid to dismiss suit
- |
SAN FRANCISCO - Countrywide Financial Corp. lost a bid to dismiss most of a proposed group lawsuit by borrowers who say the company, now owned by Bank of America Corp., fraudulently steered them into risky subprime mortgages.
US District Court Judge Dana Sabraw in San Diego said in a May 18 ruling that the borrowers could pursue racketeering and unfair competition claims against the company. The borrowers' assertions are part of the nationwide lawsuits against Bank of America and Countrywide that have been consolidated into a single case in federal court in San Diego.
"The ruling is not reflective in any way of whether the factual allegations have any merit, or whether plaintiffs will ultimately be able to prove their case," Bank of America spokeswoman Shirley Norton said in an e-mailed statement. Countrywide "maintains that the lawsuit is without merit and intends to vigorously defend the case."
Bank of America, which acquired Countrywide last year, agreed in October to settle the fraud claims by 11 states that were part of the consolidated case.
