COLCHESTER, Conn., Aug. 16, 2007 LAWFUEL – The Legal Newswire — On August 14, 2007, Scott+Scott, LLP, announced that it had filed a class action against Countrywide Financial Corp. (“Countrywide Financial” or the
“Company”) (NYSE:CFC) and certain officers and directors in the U.S.
District Court for the Central District of California. The action is on behalf of Countrywide Financial common stock purchasers during the period October 24, 2006, through August 9, 2007, inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company’s business and operations and that, as a result, the price of the Company’s securities was inflated during the Class Period, thereby harming investors.
Since the filing of the class action lawsuit, concerns have increased as to Countrywide Financial’s financial stability. On August 14, 2007, Merrill Lynch analyst Kenneth Bruce downgraded the Company to “sell”
and said it could face bankruptcy if it fails to secure short-term borrowings. According to the Wall Street Journal, the surprising “sell”
call came just two days after Mr. Bruce published a note rating Countrywide stock a “buy.” Following this, Moody’s Investors Service downgraded the Company’s senior debt ratings to “Baa3” from “A3.” As a result of news today, that Countrywide Financial was forced to draw down an entire $11.5 billion bank credit line to meet urgent liquidity needs, the price of Countrywide Financial stock tumbled 10.9%, closing at $18.95 per share, on record volume of over 201.1 million shares.
If you purchased Countrywide Financial stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than October 15, 2007. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott ([email protected], 800/404-7770, 860/537-5537) or visit the
Scott+Scott website, http://www.scott-scott.com, for more information.
There is no cost or fee to you.
Scott+Scott is a firm with significant experience in prosecuting
investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States, including information on the recent landmark decision to certify a class action for the benefit of present and former UPS employees, dating back to May 2000, who were precluded from returning to work due to medical reasons and the firm’s recent $80 million settlement on behalf of class members in a securities case against Priceline.com. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca