U.S. District Judge Mariana Pfaelzer ruled that American International Group Inc. can proceed with a lawsuit against Bank of America Corp. over residential mortgage-backed securities purchased from the bank’s Countrywide Financial unit, Bloomberg News reported yesterday. Judge Pfaelzer yesterday partly denied a defense request to throw out the case, ruling that New York-based AIG can pursue claims of fraudulent inducement. AIG sued Charlotte, N.C.-based Bank of America and Countrywide for $10 billion in damages in 2011, alleging that it was misled into thinking that loans underlying its investment were issued according to underwriting guidelines that had been “long abandoned.”
