Allstate sues Countrywide over toxic investments

NEW YORK (AP) - December 29, 2010

The suit targets Countrywide, its former CEO Anthony Mozilo and other executives and Bank of America, which bought the mortgage giant in 2008.

The suit maintains that beginning in 2003, Countrywide abandoned its underwriting standards, misrepresented crucial information about the underlying mortgage loans and concealed material facts from Allstate and other investors.

The insurer says its claims are based on analysis of the loans underlying the mortgage-backed securities, internal Countrywide documents that have been made public, and complaints filed against Countrywide by the regulators, states' attorneys general and other investors.

Bank of America had no immediate comment.

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