LOS ANGELES--an appeal court overturned the rejection of a class action brought by investors against mortgage giant Countrywide Financial Corp.
The passage by a panel of the California 2nd District Court of infirm appeal the decision by a judge of the Los Angeles Superior Court last year. This Court has launched the complaint on the grounds that a State Court had no jurisdiction to hear the case, citing the U.S. Securities Act.
In the decision released Wednesday, the Court of Appeal disagreed, concluding that such a complaint could be heard in State Court.
The decision allows the case to proceed.
Investors contend that Countrywide had a false or misleading statements in the documentation for the mortgage-backed securities were purchased by the lender between 2005 and 2007.
Bank of America acquired Countrywide in July 2008.
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