Teamsters Sue Countrywide Financial For Alleged Artifical Inflation Of Stock – 11/02/07
By Jesse Russell
Countrywide Fincancial posted a third quarter loss of $1.2 billion, has been saddlebagged by the subprime mortgage crisis, and has watched shares fall by nearly 60 percent over the course of the year. Chief Executive Angelo Mozilo is now facing some more bumps in the road as the New England teamsters and Trucking Industry Pension Fund is suing him and alleging that the company artificially inflated stock prices to help benefit executives. For more than three years, according to the suit, executives were allowed to sell shares at prices reaping $842 million. The suit also names a number of other high level executives at Countrywide as well as auditor KPMG.