BofA still bleeding from Countrywide conundrum

A group of 15 plaintiffs say settlement is unfair; file new lawsuit seeking more money

Things continue to worsen for Bank of America (BofA). After hoping to quell the disquiet from former Countrywide Financial Corp. investors that lost money during the housing collapse with an $8.5-billion settlement last month, BofA is facing a new suit from 15 plaintiffs that believe the agreement is unfair.

The plaintiffs, including BlackRock Inc., T. Rowe Price Group Inc. and TIAA-CREF, reportedly believe they can recover more money by separately suing BofA, which purchased Countrywide in 2008. The plaintiffs allege Countrywide and its former officials abandoned prudent lending practices and inflated its earnings, among other complaints, all in an effort to drive up market share.

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