American International Group had some of the claims in its $10.5 billion suit against Countrywide Financial Corp. thrown out of court because they were filed too late.
A California Federal judge on Wednesday said that some of the claims included in the suit over deteriorated underwriting standards at Countrywide, now a unit of Bank of America Corp., were "untimely" because they were filed more than three years after the bonds were first sold.
AIG said in an e-mailed statement that the company was pleased that the court largely rejected BofA's attempt to obtain the dismissal of AIG's more than $10 billion in claims based on the timeliness argument.
"As a result of this ruling, AIG can and will continue to pursue more than 98% of the recovery it seeks," said the spokesperson. "We are not surprised that the Court has barred AIG's federal claims in the same way it has for other RMBS investors and will await the outcome of various appeals already filed on that issue.”
This year has seen an uptick in MBS litigation that some market sources believe is directly correlated to claims running up against statute of limitations.