A California appellate court has reversed a state court decision that dismissed claims against Countrywide Financial and several of its subsidiaries and other financial institutions, Pensions & Investments reports. The lawsuit filed by several pension funds accused the firm of misleading investors into buying risky mortgage-backed securities.
The decision was reversed on the grounds that the case should have been brought in a federal court instead of a state court, adds FINalternatives. The main plaintiffs in the class-action suit include the $2.9 billion Vermont Pension Investment Committee, the Washington State Plumbing & Pipefitting Pension Trust and the $10.6 billion Maine State Retirement System.
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