More Lawsuits Hit KB Homes, Countrywide Mortgage
According to the San Jose Mercury News, two Southern California couples have filed a complaint in the Los Angeles Superior Court alleging that home prices were artificially inflated through collaboration when the market began to fall.
They are seeking an unspecified amount of punitive and compensatory damages as well as restitution for their losses. They are also seeking class action status for other victims of these companies.
According to the lawsuit:
“Inflated closed-sale prices resulting from the fraudulent appraisals, in turn, infected subsequent appraisals and valuations, allowing KB Home to continue to obfuscate falling values and obtain prices inflated well beyond where they would have been in the absence of this unlawful price manipulation,”
This is the second lawsuit directed at Countrywide and KB Homes to be filed in about a month, I would be willing to bet one months pay that there will be at least three more before the end of March!
These two suits were both brought by homeowners who purchased homes in 2005 at KB’s Oak Knoll development.
