DiNapoli Comments on SEC Action Against Countrywide
New York State Comptroller Thomas P. DiNapoli today issued the following statement regarding the Securities and Exchange Commission’s enforcement action against former Countrywide Financial Corporation executives Angelo Mozilo, David Sambol, and Eric Sieracki:
“Investors must be assured that the markets are free of fraud and deception, and the SEC’s enforcement action against Countrywide executives sends a clear signal that abuse of investors will not be tolerated,” DiNapoli said. “The SEC’s allegations strongly support our claims that defendants engaged in various violations of the federal securities laws. We look forward to carrying this case forward on behalf of the more than one million members, retirees, and beneficiaries of the state pension fund and the class of wronged investors we represent.”
DiNapoli, as sole trustee of the New York State Common Retirement Fund (Fund), and several New York City pension funds are the lead plaintiffs in a consolidated class action lawsuit against Countrywide and other defendants, including the executives named in the SEC action.
The class action suit alleges that material misrepresentations and omissions regarding Countrywide’s lending practices and financial accounting artificially inflated the prices of the company’s securities. When the truth was revealed, the value of the securities plummeted and investors lost money. The Fund lost tens of millions of dollars as a result of the alleged securities law violations by Countrywide and other defendants.
Labaton Sucharow LLP, a New York law firm with extensive experience in large securities fraud cases, serves as lead counsel for lead plaintiffs and the class.