Allstate and Bank of America (BAC) dismissed a lawsuit that dealt with $700 million of toxic mortgage debt, agreeing to the dismissal of the action in its entirety. Per Reuters:
The parties also waived any right to appeal, according to the document.
"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.
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.
