DES MOINES, Iowa — The retirement fund for Iowa state employees will get a share of a $500 million proposed settlement in a lawsuit against Countrywide Financial Corp. and other companies that bundled securities backed by defective home mortgages.
The Iowa Public Employees' Retirement System leads a group of retirement funds from Oregon; Orange County, Calif.; and the United Methodist Church. In 2010 they sued Countrywide and others alleging securities fraud.
Attorneys representing the retirement funds said Wednesday a settlement agreement has been reached with Bank of America, which acquired Countrywide in 2008. It must be approved by a California federal judge. The amount each group will get hasn't been decided.
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The retirement funds allege investors were sold billions of dollars of securities which eventually were downgraded and lost value costing the funds millions.
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