MINNEAPOLIS, Aug. 16, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Countrywide Financial Corporation ("Countrywide" or the "Company") (Nasdaq:CFC) publicly traded securities during the period October 24, 2006 through August 9, 2007 (the "Class Period").
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before October 15, 2007. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Countrywide and certain of its officers and directors violated federal securities laws by making false and misleading statements regarding the changing quality of the Company's mortgage loan portfolio. As late as April of 2007, Countrywide stated that credit rating agency Moody's upgraded the rating of the Company's banking segment and announced that its home loans segment was also under review for possible upgrade. Then, on June 12, 2007, the Company boasted of its position as the number one mortgage originator in the United States. These reassuring announcements served to conceal the alarming growth of loan delinquencies and the increasing likelihood of impairment charges, with resulting adverse impacts on the quality of the Company's collateralized debt obligations (CDO's), earnings and profits.
On July 24, 2007, the Company finally announced the shocking news of over $417 million in impairment charges and implementation of a $292.9 million loan loss provision. On the news, the price of Countrywide stock tumbled 10.4%, closing at $30.50 per share. Following this, on August 9, 2007, within four days of reassuring statements that touted the reliability and availability of liquidity to meet short-term needs, the Company adopted a new risk disclosure, warning of short-term liquidity issues. As a result, the price of Countrywide stock fell again, losing $1.00 or 3.4%, to close at $27.86 per share, on heavy volume of over 48.6 million shares.
If you purchased Countrywide Financial Corporation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685