Former Countrywide Financial Corp. Chief Executive Officer Angelo Mozilo asked a federal judge to dismiss a lawsuit filed against the Bank of America Corp. (BAC) unit by Allstate Corp. (ALL)
Ronald P. Fischetti, a New York attorney representing Mozilo, urged U.S. District Judge Alvin K. Hellerstein in Manhattan to throw out the insurer’s claims that Mozilo was the “architect” of a scheme to abandon underwriting at Countrywide, according to a court document filed today.
Allstate, based in Northbrook, Illinois, claimed in the Dec. 27 lawsuit that Countrywide misrepresented $700 million in residential mortgage-backed securities the insurer purchased. Mozilo held no position at Countrywide subsidiaries that sold mortgage-backed securities, said nothing about the securities and didn’t read the documents that offered them, Fischetti said.
“These conceded facts control the outcome as to Mr. Mozilo,” Fischetti said. “Nothing in aiding and abetting or control person law permits a plaintiff to sue a defendant over sales” of mortgage-backed securities “when he had nothing to do with them.”
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