Bloomberg reports that a lawsuit filed against the troubled Charlotte-based bank by Allstate has been dismissed.The lawsuit related to losses stemming from $700 million in mortgage securities that the insurer purchased from Countrywide Financial.
Bank of America acquired Countrywide in 2008.
The dismissal could end up having larger, positive implications for Bank of America, becasue the judge found that the evidence Allstate submitted “wasn’t sufficient to support its allegations that Bank of America set out to defraud Countrywide’s creditors.”
This could allow Bank of America to shield itself in the future from similar claims against it related Countrywide’s actions.
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