Schubert & Reed LLP Issues Notice of Pendency of Class Action Against Countrywide Capital V

By: Legal - Law News

On November 16, 2007, Schubert & Reed LLP filed a class action lawsuit in the United States District Court, Central District of California, on behalf of all persons who purchased the 7% Capital Securities (“the Capital Securities”) of Countrywide Capital V (“CCV”) from the date of CCV’s public offering on November 1, 2006 to August 16, 2007 (“the Class Period”). Plaintiff alleges claims for violation of Sections 11, 12 and 15 of the Securities Act of 1933 (the “Securities Act”), 15 U.S.C. § 77k et seq.

The Capital Securities at issue in the complaint filed by Schubert & Reed LLP represent an undivided beneficial interest in the assets of CCV. The only assets of CCV are junior subordinated deferrable interest debentures issued by Countrywide Financial Corporation (NYSE:CFC)(“Countrywide” or “the Company”), a holding company that engages in mortgage lending and other finance-related operations. The Capital Securities trade on the New York Stock Exchange (“NYSE”) and may be found under the symbol CFC-PB (Yahoo Finance); CFC.PRB (CBS Marketwatch); CFC-B (Google Finance); CFC-B (AOL Finance); or CFCB (WSJ.com). The offering price was $25.00.

The Complaint alleges that CCV’s Registration Statement and Prospectus contained material misstatements and omissions. At the time of the offering, Countrywide was suffering from adverse factors, which were not properly disclosed. In particular, the Registration Statement and Prospectus failed to disclose Countrywide’s exposure to massive losses caused by its subprime lending practices. Such matters were causing a material adverse affect on Countrywide’s business at the time of CCV’s November 1, 2006 offering. According to Countrywide’s recent statements, these matters will continue to affect its business going forward.

Certain of the adverse factors affecting Countrywide’s business were first revealed on July 24, 2007, when the Company forecast a weak second half of 2007 due to adverse market conditions, which caused the price of the Capital Securities to decline from $24.46 on July 23, 2007 to $20.85 on July 31, 2007. As the Company continued to issue negative developments, the price of the Capital Securities continued to fall to just $13.85 on August 16, 2007, the end of the Class Period.

Plaintiff and the Class have suffered serious financial damage as a result of defendants’ material misstatements and omissions in the Registration Statement and Prospectus. Had plaintiff and the class known the truth, they would not have purchased CCV’s Capital Securities, nor purchased them at the inflated prices that were paid. If you purchased CCV Capital Securities during the Class Period, you may request that the Court appoint you as lead plaintiff by January 18, 2008.

Article Source: http://www.share.onlypunjab.com

For more information visit www.schubert-reed.com.

Please Rate this Article

Not yet Rated