Countrywide Financial Corp. ERISA Litigation

For information regarding your individual share of the Net Settlement Fund, please call 1.866.759.6519. For general information and Frequently Asked Questions regarding the distribution to class members, please visit www.legacycountrywideplanresolution.com.

Case History:

The Alvidres v. Countrywide Financial Corp., et al., the Pro v. Countrywide Financial Corp., et al., and the Bogusz v. Countrywide Financial Corp., et al. Complaints were filed in the United States District Court for the Central District of California on behalf of Plaintiffs and a class (the “Class”) of all persons who were participants in or beneficiaries of the Countrywide Financial Corp. 401(k) Savings and Investment Plan (the “Plan”) between January 31, 2006 and July 1, 2008 (the “Class Period”) and whose accounts included investments in Countrywide common stock.

In each of the Complaints, Plaintiffs alleged that during the Class Period the Defendants breached their fiduciary duties to Plaintiffs and the Class members by:

• failing to prudently and loyally manage the Plan’s assets;
• failing to monitor fiduciaries;
• failing to provide complete and accurate information to the Class; and
• failing to discharge their co-fiduciary obligations.

On December 18, 2007, the Hon. R. Gary Klausner issued an order which stayed each of the Countrywide ERISA cases except Alvidres v. Countrywide, pending the Court’s ruling on the class certification motion in that case. Countrywide Defendants filed three separate motions to dismiss the Alvidres Complaint. Judge Klausner denied each of the motions in Orders dated March 17, March 18, and April 9, 2008. On April 16, 2008, Judge Klausner granted Plaintiff’s Motion for Class Certification.

Settlement Update:

On August 5, 2009, Plaintiff filed his motion for preliminary approval of a Settlement between the Plaintiff Class and all Defendants. On August 24, 2009, the Hon. John F. Walter granted preliminary approval of the Settlement. As part of the Settlement, the Defendants agreed to pay the sum of $55,000,000 (fifty-five million dollars) in cash from available insurance policies.
At the Fairness Hearing held on November 16, 2009, the Court approved the Settlement and the Plan of Allocation. The Court also issued its Order granting Plaintiff’s Motion for Attorneys’ Fees, Costs, and Class Representative Compensation. The appeals deadline in this matter was December 16, 2009, after which the Settlement became Final.

After payment of taxes, court-approved costs, and attorneys’ fees and expenses, the Settlement proceeds were paid to a trust for the Plan. The amount remaining after implementation expenses was allocated to the plan accounts of members of the Class according to a Plan of Allocation approved by the Court.

For further details regarding the settlement, please visit the Alvidres v. Countrywide Settlement page at www.KellerSettlements.com.

For information regarding your individual share of the Net Settlement Fund, please call 1.866.759.6519. You will need to provide your reference number shown on the first page of your September 20, 2010 letter from Bank of America. Please do not call Keller Rohrback, as we cannot assist you with questions regarding your individual share of the Settlement.

For general information and Frequently Asked Questions regarding the distribution to class members, please visit www.legacycountrywideplanresolution.com.