Countrywide Financial Corp. ERISA Litigation
The Alvidres v. Countrywide Financial Corp., et al., the Pro v. Countrywide Financial Corp., et al., and the Bogusz v. Countrywide Financial Corp., et al. Complaints were filed in the United States District Court for the Central District of California on behalf of Plaintiffs and a class (the “Class”) of all persons who were participants in or beneficiaries of the Countrywide Financial Corp. 401(k) Savings and Investment Plan (the “Plan”) between January 31, 2006 and July 1, 2008 (the “Class Period”) and whose accounts included investments in Countrywide common stock.
In each of the Complaints, Plaintiffs alleged that during the Class Period the Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
• failing to prudently and loyally manage the Plan’s assets
• failing to monitor fiduciariesfailing to provide complete and accurate information to the Class
• and failing to discharge their co-fiduciary obligations
On December 18, 2007, the Hon. R. Gary Klausner issued an order which stayed each of the Countrywide ERISA cases except Alvidres v. Countrywide, pending the Court’s ruling on the class certification motion in that case. Countrywide Defendants filed three separate motions to dismiss the Alvidres Complaint. Judge Klausner denied each of the motions in Orders dated March 17, March 18, and April 9, 2008. On April 16, 2008, Judge Klausner granted Plaintiff’s Motion for Class Certification.
On August 5, 2009, Plaintiff filed his motion for preliminary approval of a Settlement between the Plaintiff Class and all Defendants. On August 24, 2009, the Hon. John F. Walter granted preliminary approval of the Settlement. As part of the Settlement, the Defendants agreed to pay the sum of $55,000,000 (fifty-five million dollars) in cash from available insurance policies.
At the Fairness Hearing held on November 16, 2009, the Court approved the Settlement and the Plan of Allocation. The Court also issued its Order granting Plaintiff’s Motion for Attorneys’ Fees, Costs, and Class Representative Compensation. The appeals deadline in this matter was December 16, 2009, after which the Settlement became Final.