BofA Tagged With Suit Alleging That Countrywide Misrepresented Risks On $700M+ In Crappy Mortgage Securities It Unloaded On Insurance Company

Reuters reports:

• Allstate Corp has sued Bank of America Corp, its Countrywide lending unit and 17 other defendants for allegedly misrepresenting the risks on more than $700 million of mortgage securities it bought from Countrywide.

• Allstate, the largest publicly traded U.S. home and auto insurer, alleged it suffered "significant losses" after Countrywide misled it into believing the securities were safe, and the quality of home loans backing them was high. The lawsuit also names several former Countrywide officials as defendants, including longtime Chief Executive Angelo Mozilo.

For more, see Allstate sues BofA, Mozilo over Countrywide losses.