X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Plaintiffs’ lawyers who obtained the record $624 million class action settlement last year on behalf of shareholders of Countrywide Financial Corp. are scrambling to remake their deal after more than two dozen major institutional funds opted out, including the nation’s largest — the California Public Employees’ Retirement System.

Lawyers on both sides are expected back in court on Feb. 25 to seek final approval of the settlement. Because of the number and size of institutional investors that opted out, the value of the settlement was reduced to $601.5 million. Lead plaintiffs’ counsel Labaton Sucharow also cut back its request for attorney fees by nearly $1 million. But both sides insist that the deal remains fair and reasonable. In the revised agreement, the parties set aside $22.5 million for Countrywide to use as payment to resolve future settlements with the opt-out funds, according to court documents. They also point to a recent settlement between the U.S. Securities and Exchange Commission and three former senior executives of Countrywide that will provide an additional $48.1 million to shareholders in the class action.

Meanwhile, at least three of the institutional investors that opted out of the settlement, including funds for the states of Michigan and Oregon, filed separate lawsuits against Countrywide last month. They argue that the proposed settlement would not have adequately compensated them for the losses they incurred.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.