Blair Nicholas Discusses Countrywide Opt-Out Litigation with The National Law Journal
February 21, 2011
In its coverage of the various litigations against Countrywide Financial Corp., The National Law Journal ("NLJ") featured BLB&G partner Blair Nicholas discussing why several of BLB&G's clients, among dozens of other large institutional investors, have opted out of the recent $624 million settlement achieved in the action to pursue direct litigation against the company instead.
In the article entitled "Huge settlement? No thanks," NLJ maintains that many institutional investors are pursuing their own suits against Countrywide after "citing losses far greater than what they would have received in the proposed settlement." Unwilling to settle for just "pennies on the dollar," Mr. Nicholas explains that his clients, "are fully committed to recovering the substantial damages caused by the fraudulent conduct at Countrywide." According to Mr. Nicholas, "The conduct by the former officers of Countrywide was particularly egregious. And prominent institutional investors were completely blind-sided by [its] pervasiveness."
Mr. Nicholas leads BLB&G's Direct Action practice group and has most recently served as lead counsel on behalf of prominent mutual funds, hedge funds and a public pension fund in a direct "opt-out" action against Tyco International and certain of its former officers, which was successfully resolved for over $105 million and represented a significant multiplier over the recovery in the securities class action. He also represented prominent mutual funds in direct actions against Marsh & McLennan and Qwest Communications, which were also resolved for significant multipliers over the class action recovery.