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Allstate sues BofA, Mozilo over Countrywide losses

2:10pm EST

By Jonathan Stempel

 

NEW YORK (Reuters) - Allstate Corp has sued Bank of America Corp and 18 other defendants over alleged losses on more than $700 million of mortgage securities it bought from Countrywide Financial Corp.

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 that the quality of residential home loans backing them was high.

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