Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Ninth Circuit Remands Countrywide Class Action

SAN FRANCISCO (CN) - The 9th Circuit remanded a class action accusing Countrywide Home Loans of understating the risk of mortgage investments, many of which have become uncollectible.

On behalf of mortgage borrowers, David Luther sued Countrywide and its subsidiaries under the Securities Act of 1933.

Countrywide removed the case to federal court under the Class Action Fairness Act of 2005 (CAFA), which allows the removal of high-dollar lawsuits against diverse defendants.

However, Judge Silverman ruled that the CAFA does not supersede the Securities Act's specific bar against the removal of state matters that are brought to a state court.

"Because the claim proceeded under state law rather than the 1933 Act," Silverman wrote, "CAFA did not apply on its terms."

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...