Welcome to the Countrywide Financial Corporation Securities Settlement Website.
To visit the SEC v. Mozilo Fair Fund Distribution website please click here.
UPDATED IMPORTANT DATES & DEADLINES
Submit A Proof of Claim Form:
(The Deadline Has Been Extended)
Deadline has passed
(Get Out Of The Class):
Deadline has passed
Remain In The Class And Object to the Settlement:
Deadline has passed
Remain In The Class And Object to the Amendment and Modification to the Plan of
Deadline has passed
The Court’s Fairness Hearing
Settlement was approved. The Hearing was held on February 25, 2011.
The following is a summary of information presented in more detail in the Supplemental
Notice of Proposed Modified Settlement of Class Action and Fairness Hearing, (the
“Supplemental Notice”), which Class Members should receive in the mail, and which
you can access by clicking the box on the left. Since this is just a summary, you
should read the full Supplemental Notice for additional details.
Your rights may be affected by this Supplemental Notice whether you act or do not
act. Please read the Supplemental Notice and the previously mailed Notice
of Pendency and Proposed Settlement of Class Action and Fairness Hearing (the “Original
Notice”) carefully. The Supplemental Notice does not replace all of the information
in the Original Notice.
The Parties have reached an agreement to modify the Settlement Agreement in this
Action. As more fully discussed in the Supplemental Notice, under the proposed modification,
up to $22.5 million of the $624 million Settlement Amount will be set aside for
up to two years to be used by Countrywide to satisfy claims asserted by individuals
and entities that voluntarily excluded themselves from the Class. The parties believe
that the per share recovery for Class Members will be at least as great, if not
greater, than the recovery predicted in the Original Notice for at least two reasons.
First, with requests for exclusion having been received, there are now fewer Class
Members sharing in the Net Settlement Fund. Second, the amendment to the Settlement
Agreement ensures that the amount that will be set aside will not exceed the estimated
amount that the excluded Class Members would have received had they remained in
Moreover, as a result of a recent settlement reached by the Securities and Exchange
Commission (the “SEC”) in a civil enforcement action, an additional $48,150,000
will be distributed to certain Class Members in this Action.
The following is a summary of information presented in more detail in the Original
Notice, which Class Members should have received in the mail, and which you can
access by clicking the box on the left. Since this is just a summary, you should
read the full Original Notice for additional details.
Please read this information carefully. If you are a Class Member (as defined below),
your legal rights will be affected by this Settlement and you may be entitled to
participate in the settlement:
All persons or entities that, between March 12, 2004 and March 7, 2008, inclusive
(the “Class Period”), either in the open market or pursuant or traceable to a registration
(i) Purchased or otherwise acquired Countrywide Financial Corporation (“Countrywide”)
publicly traded common stock or call options, and/or sold Countrywide publicly traded
put options (the “Common Stock Subclass”); or
(ii) Purchased or otherwise acquired Countrywide Capital V 7% Capital Securities
(the “Capital Securities Subclass”); or
(iii) Purchased or otherwise acquired Countrywide Series A Medium-Term Notes, Series
B Medium-Term Notes, 6.25% Subordinated Notes Due May 15, 2016, Series L Medium-Term
Notes (limited to CUSIP Nos. 22237LNR9 and 22237LPA4), and/or Series M Medium-Term
Notes (limited to CUSIP No. 22237LPM8) (the “Debt Securities Subclass”); and were
damaged thereby (these subclasses are collectively referred to as the “Class”).
Securities Brokers and other Nominees: Please see instructions on page 4 of the Supplemental
For a complete list of Countrywide Eligible Securities and CUSIP Numbers, click
the box on the left.
THE COURT’S SETTLEMENT FAIRNESS HEARING
The Settlement was approved by the Court on March 4, 2011.
WHAT IS THIS LAWSUIT ABOUT?
Plaintiffs allege generally that Defendants violated federal securities laws by
making false and misleading statements concerning Countrywide’s loan origination
and underwriting practices, and the creditworthiness of its borrowers and riskiness
of its loans. Plaintiffs also allege that Countrywide’s financial statements during
the Class Period were false and misleading and presented in violation of generally
accepted accounting practices by overvaluing the Company’s retained interests in
securitized loans and mortgage servicing rights while under-reserving for losses
on loans held on the books and in connection with loans sold on the secondary market.
Plaintiffs allege that the Defendants violated the Securities Exchange Action of
1934 and the Securities Act of 1933.
The Defendants all vigorously deny the allegations of wrongdoing or any liability
THE SETTLEMENT BENEFITS
The Defendants have paid $624 million into escrow accounts that are earning interest
for the benefit of the Class. In exchange for the agreement of Countrywide and KPMG
not to exercise their rights to terminate the Settlement in connection with the
Opt-Outs, Plaintiffs have agreed to set aside up to $22,500,000 of the $624,000,000
Settlement Amount (the “Set-Aside”) for a period of two (2) years from the date
that the Settlement, as modified, is approved by the Court.
The balance of the fund, after deduction of the Set-Aside, payment of Court-approved
attorneys’ fees and expenses, taxes, and the costs of notice and claims administration,
will be distributed among all Class Members who send in a valid Proof of Claim form
and are entitled to a distribution from the Net Settlement Fund (“Authorized Claimants”).
THE OPTIONS AVAILABLE TO CLASS MEMBERS UNDER THIS SETTLEMENT
If you are a Class Member, you have the following options:
FILE A PROOF OF CLAIM FORM – DEADLINE EXTENDED
To qualify for a payment, you must send in a timely, valid and completed Proof of
Claim form with supporting documents (DO NOT SEND ORIGINALS) to the Claims
Administrator. You may download a Proof of Claim at the link on the left. Please
read the instructions carefully, fill out the Proof of Claim form, include all the
documents the form asks for, sign it, and mail it to the Claims Administrator by
first class mail, postmarked no later than April 26, 2011. If you have already
filed your Proof of Claim form, you do not need to file another one.
EXCLUDE YOURSELF FROM THE CLASS
The Court has determined that Class Members who did not previously request to be
excluded from the Class by October 18, 2010 may not request exclusion now.
OBJECT TO THE SETTLEMENT
If you are a Class Member, you can object to the Amendment and/or the modification
to the Plan of Allocation as described in Section H of the Supplemental Notice.
You may write to the Court setting out your objection(s). You may give reasons why
you think the Court should not approve any or all of the modified terms set forth
in the Amendment or the modification to the Plan of Allocation. If you would like
the Court to consider your views, your objection must follow the requirements and
procedures set forth in question 18 of the Original Notice, and must be filed with
the Court and mailed and delivered to all of the counsel identified in question
18 of the Original Notice, no later than February 18, 2011. If you wish to
appear at the Fairness Hearing, either yourself or through an attorney, you must
file and mail a Notice of Appearance in accordance with the procedures set forth
in question 22 of the Original Notice, no later than February 18, 2011.
The objection deadline, February 18, 2011, has already passed.
Further information regarding the Settlement, the Notices and how to file your claim
may be obtained by contacting the Claims Administrator or reading through the Original
Notice, Supplemental Notice and Proof of Claim links on the left. You may also contact
Plaintiffs’ Lead Counsel at the address listed on the Contact Information link on