NEW YORK, Aug. 31, 2007 (PRIME NEWSWIRE) -- 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/about/press/Labaton-Sucharow-LLP-Files-Class-Action-Lawsuit-Against-Countrywide-Financial-Corporation-Extending-The-Class-Period.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.
Plaintiff is represented by the law firm of Labaton Sucharow LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca