Backdating of Options Charged at Countrywide

CALABASAS, Calif. – A leading plaintiffs lad firm filed a class action suit yesterday charging Countrywide Financial Corp. and top executives with backdating of millions of dollars in stock options. The suit, filed by Stull, Stull & Brody, claims that certain current and past executives and directors of the mortgage banking giant manipulated the prices of stock option grants by changing dates in order to reap maximum benefits. Countrywide CEO and co-founder Angelo Mozilo has been one of the best paid executives in a publicly held company over the past two years in which he has realized more than $200 million in profits on hist stock options, including $119 million in 2005 and more than $85 million so far this year, according to documents filed with the Securities and Exchange Commission. Several other top Countrywide executives have also reaped millions of dollars in gains on the exercise of their options during that period.