SALEM, Ore. (AP) — The Oregon attorney general and the state treasurer have filed a pair of securities lawsuits against Countrywide Financial Corp. alleging the state pension and worker compensation funds suffered $14 million in damages resulting from investments in Countrywide.
The Statesman Journal reports the complaints filed Wednesday in Multnomah County Circuit Court in Portland accuse Countrywide of making false statements that inflated the prices of Countrywide’s stock and bonds.
The state bought and sold shares of Countrywide stock and bonds from 2004 to March 2008. State officials said Countrywide claimed to deal in prime quality mortgage loans different from riskier loans by competitors when it was actually writing a higher volume of riskier loans.
Oregon opted out of a class-action settlement with Countrywide, which could have netted the state less than $500,000.
