Bank of America dismissed from lawsuit
A U.S. district judge granted Bank of America's request to dismiss the claim against it on grounds that it can't be held liable for actions of a unit, according to an order filed Wednesday in Los Angeles. Credit: AP File
Bank of America Corp. has been dismissed from a lawsuit brought by investors who bought mortgage-backed securities sold by Countrywide Financial Corp., the home lender Bank of America acquired in 2008.
U.S. District Judge Mariana Pfaelzer granted Bank of America's request to dismiss the claim against it on grounds that it can't be held liable for actions of a unit, according to an order filed Wednesday in Los Angeles.
The investors failed to show that two separate transactions in 2008, whereby Bank of America, through a subsidiary, acquired and transferred the Countrywide assets, were a "de facto" merger, Pfaelzer said.
The judge had dismissed the lawsuit in November, saying the investors didn't sufficiently demonstrate they suffered an injury for the securities they bought, and that the statute of limitations had expired for some claims. The judge allowed the plaintiffs to file an amended complaint to address these failings before she would rule on Bank of America's request to dismiss it from the complaint. -- Bloomberg News
'It's definitely a destination' NewsdayTV's Doug Geed takes us "Out East," and shows us the Long Island Aquarium, a comfort food restaurant in Baiting Hollow, a Riverhead greenhouse and Albert Einstein's connections to the East End.
'It's definitely a destination' NewsdayTV's Doug Geed takes us "Out East," and shows us the Long Island Aquarium, a comfort food restaurant in Baiting Hollow, a Riverhead greenhouse and Albert Einstein's connections to the East End.
