Employees Sue Countrywide Over 401(k) Losses

A number of Countrywide Financial employees have sued the firm, charging that as the company has suffered from subprime loans, their 401(k) account balances have fallen sharply, Dow Jones reports.

Also named in the lawsuit is Countrywide Chairman and CEO Angelo Moziko and members of the retirement benefits committee.

“Most of these employees weren’t risk-takers, rather claims processors and line staff who go to work every morning, putting a little away every month for retirement or to finance a child’s education,” said the plaintiff’s attorney, Steve Berman. “With Countrywide’s demise, they’ve seen their retirement funds decimated.”

The lawsuit does not specify how much in damages the plaintiffs are seeking, only saying that they have collectively lost millions of dollars from their 401(k) accounts.

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