LOS ANGELES, Sept. 14, 2007 (PRIME NEWSWIRE) -- Participants in the Countrywide Financial Corporation 401(k) Savings and Investment Plan ("Plan") have filed a class action lawsuit, seeking recovery of millions of dollars that they lost during the recent collapse of the company's stock.
Filed in Federal Court in Los Angeles, California, Brockmeyer, et al., v. Countrywide Financial Corporation, et al. is a class action filed on behalf of the Plan and its participants whose accounts included investments in Countrywide stock (NYSE:CFC) from April 24, 2004 to the present. It names Countrywide and its CEO, Angelo Mozilo, as well as other individual fiduciaries. The class action complaint ("complaint") alleges that the defendants knew or should have known, in light of Countrywide's illegal financial and business practices, that a sharp decline in the stock's price was inevitable, and they should have taken action to protect Plan participants from that decline. The complaint further alleges Countrywide improperly made matching contributions solely in Countrywide stock, failed to sell Countrywide stock even after the stock price started to fall and the company faced dire financial circumstances, and failed to provide complete and accurate information to the Plan's participants and beneficiaries.
Plaintiff Jonie L. Brockmeyer is asking that the Plan be made whole for the money lost, as well as monies the Plan and its participants would have made if the Countrywide fiduciaries had fulfilled their fiduciary obligations under the Employee Retirement Income Security Act ("ERISA").
Since August of this year, the company's stock has dropped from over $45 per share to the $15-$17 range. As of this month, Countrywide has lost almost $2 billion in total market capitalization.
Countrywide Plan participants who are interested in joining this class action lawsuit can receive more information by calling 866-620-6722 or e-mailing classaction@linerlaw.com.
Liner Yankelevitz Sunshine & Regenstreif LLP is one of the country's leading law firms handling retirement plan litigation under ERISA. Our attorneys helped pioneer this field with the Rite-Aid and McKesson cases, which are among the first large-scale ERISA 401(k) class actions in the United States.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca