List of Defendants Growing in Suit Against Countrywide Financial

New York authorities are suing 26 banks and two accounting firms that did business with Countrywide Financial Corp., saying the companies failed to ensure the beleaguered mortgage company was being honest with investors.

The banks and accounting firms were added as defendants Friday in a class action lawsuit already pending against Countrywide in California.

Two of the lead plaintiffs, New York State Comptroller Thomas P. DiNapoli and City Comptroller William C. Thompson Jr., oversee several huge government pension funds that invested in Countrywide securites.

The long list of new defendants in the case includes underwriters and accounting firms that participated in the marketing of Countrywide securities. The suit claims that the company made misstatements about its lending practices, artificially inflating the price of its securities.

“Countrywide’s underwriters had a duty to investigate whether Countrywide was acting honestly,” DiNapoli said. “Investors lost millions, and New Yorkers lost their homes. We can’t sit idly by.”

Thompson and DiNapoli said they had also filed new complaints against several Countrywide officers and directors who hadn’t been named as defendants in the previous court action.

A spokesman for Countrywide did not immediately respond to a phone message and an e-mail Friday.

California-based Countrywide rose to become the nation’s largest mortgage lender but has been struggling amid rising mortgage defaults, particularly subprime loans to borrowers with questionable credit histories.

Latest Comments

• October 31, 2009 at 11:41 am

  Annette Engen says:

  Well I had heart surgery on Oct. 2008. My heart was stopping so they had to put a defibrillator in so my heart keep going. From this day my heart is only working 30%.Fighting ... read more
• June 16, 2009 at 12:28 pm

  Sorry says:

  Sorry you have had so much trouble but ultimately your fight should lie with the realtor who sold you the house and the realtor who represented you in the purchase, not the lo... read more
• June 16, 2009 at 1:43 am

  Annette Engen says:

  I wrote to Countrywide about what us wrong with the house,the dishwasher didn't work at all,the frig was going out,the store was stuck on high heat,some of the wall heaters di... read more