On Tuesday, Manhattan federal district court judge William Pauley III partly denied a motion to dismiss a class action against Bank of New York Mellon, which acted as trustee to hundreds of trusts for billions of dollars in Countrywide-issued MBS. The ruling allows the plaintiffs to pursue federal claims against BNY Mellon, and it gives Countrywide investors new ammunition to disrupt BofA’s proposed settlement.
“It’s a true landmark decision that we hope will result in investors recovering their losses on theories they have not been able to recover on in the past,” said Beth Kaswan of Scott + Scott, who represents the four pension funds that filed the class action.
