| NEW YORK, April 8
NEW YORK, April 8 Allstate Corp and Bank
of America Corp's Countrywide unit have agreed to
dismiss a lawsuit stemming from $700 million of toxic mortgage
debt, according to a court filing on Tuesday.
The parties "have agreed to dismissal of this action in its
entirety," lawyers for Allstate and Countrywide said in a
document filed in U.S. District Court for the Central District
The parties also waived any right to appeal, according to
Terms of the agreement were unclear.
"The parties have agreed to resolve the matter on mutually
agreeable terms," Daniel Brockett, a lawyer for Allstate, said
in a telephone call Tuesday night.
Representatives for Allstate and BofA declined to comment.
In 2011, a U.S. District Judge Mariana Pfaelzer in Los
Angeles narrowed the lawsuit when she tossed federal securities
law claims Allstate had brought against mortgage lender
Countrywide over the debt, saying Allstate waited too long to
sue. She also dismissed Bank of America, which acquired
Countrywide in 2008, as a defendant.
However, Pfaelzer let Allstate pursue state law claims
accusing Countrywide of failing to tell investors that loans
underlying its mortgage securities did not comply with its own
The case is Allstate Insurance Co et al v. Countrywide
Financial Corp et al, U.S. District Court, Central District of
California, No. 11-05236.
(Reporting by Bernard Vaughan; additional Reporting by Karen