Allstate securities case suffers setback

A judge says the insurer was “judge shopping” in its case against Countrywide Financial; moves it from New York to California.

Apparently a little “mayhem” has caught up with Northbrook, Ill.-based Allstate Insurance Co.

In its quest to recoup losses after having purchased $700 million worth of mortgage-backed securities from a Countrywide Financial in the years leading up to the financial crisis, Allstate’s case took an undesired turn when a New York judge granted a motion by Countrywide to move the case to the Western Division of the Central District of California.

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