FULL COURT PRESS

A federal court has ruled that Florida’s lawsuit against the former chief executive of Countrywide Financial Corp. should be tried in a Florida court. A federal court in California this week sent the lawsuit against former CEO Angelo R. Mozilo back to Florida’s circuit court. Countrywide was the nation’s largest mortgage lender before a spike in bad loans ravished its business, and Bank of America Corp. purchased it last year. The state’s lawsuit, filed last year, accuses Mozilo of misleading borrowers and investors about the loans. Mozilo had argued the lawsuit was based on federal issues, but the court ruled that Florida’s lawsuit cites relevant state law and can proceed in its courts. Mozilo has denied wrongdoing.

Copyright © 2009 The Associated Press.

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