Calif. Attorney General Sues Countrywide Financial

Associated Press

11:50 AM EDT, June 25, 2008

LOS ANGELES -- California's attorney general has filed a civil lawsuit against Countrywide Financial Corp., claiming the mortgage lender used misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn't fully understand.

The Los Angeles County Superior Court lawsuit comes on the same day Countrywide shareholders are scheduled to vote on the company's takeover by Bank of America Corp. The attorney general started gathering information last fall, when it started investigating the troubled company's business practices as foreclosures began to skyrocket nationwide.

The attorney general in Illinois plans a similar lawsuit there.