August 31, 2007
Labaton Sucharow LLP Files Class Action Lawsuit Against Countrywide Financial Corporation Extending the Class Period
NEW YORK (August 31, 2007) – Labaton Sucharow LLP filed a class action lawsuit on August 31, 2007 in the United States District Court for the Central District of California, on behalf of persons who purchased or otherwise acquired the common stock of Countrywide Financial Corporation (“Countrywide” or the “Company”) (NYSE: CFC) between April 24, 2004 and August 9, 2007, inclusive, (the “Class Period”). The lawsuit was filed against Countrywide and Angelo R. Mozilo, David Sambol, Eric P. Sieracki and Stanford L. Kurland (“Defendants”).
If you are a member of this class you can view a copy of the complaint online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants misled investors by falsely representing that Countrywide had strict and selective underwriting and loan origination practices, ample liquidity that would not be jeopardized by negative changes in the credit markets, and a conservative approach that set it apart from other lenders. Additionally, the complaint alleges that Countrywide also improperly inflated its reported income by understating its loan loss reserves in SEC filings.
On July 24, 2007, Countrywide announced that it was taking a $417 million impairment charge and would add $292.9 million to its loan loss reserves, and noted defaults were increasing in the prime market. In reaction to this news, shares of Countrywide fell 10.5% to close at $30.50 per share. Then on August 9, 2007, the Company warned of potential short-term liquidity issues. Shares reacted negatively to the news, falling $1.00 per share to close at $27.86 per share.
If you bought Countrywide securities between April 24, 2004 and August 9, 2007, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than October 15, 2007.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country’s premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for over 45 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.
If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.