B of A Agrees to Settle Investor Suit over Countrywide MBS

Bank of America has agreed to settle with investors who alleged that Countrywide misled them about mortgage-backed securities sales for $500 million.

The settlement in the case, Luther v. Countrywide Fin. Corp., is pending court approval and was reached with assistance of a mediator.

The sales in question occurred from 2005 to 2007, before B of A bought Countrywide in 2008.

The settlement would also involve the resolution of two other cases—Western Conference of Teamsters Pension Plan v. Countrywide Fin. Corp. and Maine State Ret. Sys. v. Countrywide Fin. Corp., according to Robbins Geller Rudman and Dowd LLP, a law firm representing some plaintiffs in the case.