New York City Comptroller William C. Thompson, Jr. today issued the following statement after New York State Comptroller Thomas DiNapoli and the New York City Pension Funds were selected as co-lead plaintiffs in the Countrywide Financial Corporation securities class action:

We are pleased that on November 28, 2007, the United States District Court for the Central District of California (Hon. Mariana R. Pfaelzer) appointed New York State Comptroller Thomas P. DiNapoli, as Administrative Head of the New York State and Local Retirement Systems and as Trustee of the New York State Common Retirement Fund, and the New York City Pension Funds, to be co-lead plaintiffs in the federal securities fraud class action against Countrywide Financial Corporation, its subsidiaries, a variety of current and former officers and directors, and underwriters of public offerings of Countrywide securities.

The current complaint in that class action alleges that Countrywide and the other defendants knowingly, or with deliberate recklessness, issued a series of statements during the class period that were false and misleading when made because Countrywide’s actual lending practices differed materially from the description of those practices in the Company’s Securities and Exchange Commission (SEC) filings, press releases and conference calls, and the Company’s ability to weather the foreseen deterioration in the real estate and credit markets was grossly exaggerated by defendants. The complaint further alleges that the Company also improperly inflated its reported income by understating its loan loss reserves in SEC filings.

In appointing Comptroller DiNapoli and the New York City Pension Funds as co-lead plaintiffs, the Court found that together, the State and City pension funds had suffered the largest loses of any investors who applied for lead plaintiff status in the Countrywide case: combined losses as much as $100 million.

The Court also found that the State and City pension funds had “considerable experience” in large securities cases, and had served as lead plaintiffs in prior cases “with considerable success.”  The Court also accepted the statement of the team of New York State and City pension funds that it “intends to vigorously protect the interests of all plaintiffs.”

Together, the State Comptroller and New York City Pension Funds will represent all purchasers of the publicly-traded securities of Countrywide. The court ruled that, although other filers had sought additional separate classes, such as for purchasers of preferred stock, the “economy and efficiency would be promoted by having a single lead plaintiff bring all claims involving publicly traded securities, whether they arise under the 1933 Act or 1934 Act, and whether they concern common or preferred stock.”

The Court also approved the State Comptroller’s and New York City Pension Funds’ choice of securities law firm Labaton & Sucharow as lead counsel for the class.  The Court said: “The firm has extensive experience in large securities fraud cases and in particular, in managing class actions involving public securities purchasers” and “the Court is confident that counsel will be able to properly represent the plaintiffs in the consolidated case.”

We are honored that together, the State and City pension funds have been selected to take the lead on behalf of the injured class members in this significant securities class action. 
We thank Comptroller DiNapoli for the opportunity to join him and the State pension funds in this important effort, and we look forward to an amicable and productive partnership.

William C. Thompson, Jr. serves as Chief Investment Advisor and Custodian of Assets to all of the New York City Pension Funds, and as a Trustee of four of the Pension Funds. The City’s Pension Funds currently have more than $110 billion in assets.

Besides Thompson, trustees on the New York City Fire Department Pension Fund are:
Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Michael Currid, Captains’ Rep., Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

In addition to Thompson, the trustees on the New York City Pension Funds are:

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Drogan, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

New York City Employees’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System of New York: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

Board of Education Retirement System: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Edison O. Jackson, Richard Menschel and Marita Regan; Luis Peguero, Patrick Sullivan (Manhattan), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and Milagros Rodriguez of District Council 37, Local 372.

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