Lending giant Countrywide Financial Corp. is facing a class-action lawsuit filed by employees who say thousands of workers invested in Countrywide’s 401k program lost millions of dollars when the lender’s stock value plummeted.
The law firm of Hagens, Berman, Sobol, Shapiro, LLP filed the suit just days after Countrywide announced plans to cut approximately 12,000 jobs within the next three months, or 20-percent of its workforce.
The class-action lawsuit specifically accuses Countrywide leaders of providing misleading statements and covering up high-risk loans that proved detrimental to the health of employee investments.
“Most of these employees weren’t risk takers, rather claims processors and line staff who go to work every morning, putting a little away every month for retirement, or to finance a child’s education,” Berman noted. “With Countrywide’s demise, they’ve seen their retirement funds decimated.”
Click here to read the full press release from the plaintiffs’ attorney.
Click here to read Countrywide’s restructuring initiative.
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