On October 11th, the Southern District of California addressed two motions in plaintiffs' multi-district litigation alleging that Countrywide and its various affiliates engaged in improper mortgage lending practices in violation of the Racketeer Influenced and Corrupt Practices Act and California state law. In the first motion, plaintiffs sought a nationwide class of over 500,000 borrowers involving two distinct loan products by four different divisions of Countrywide, which used different marketing techniques and materials. Denying class certification, the Court held that although plaintiffs established numerosity and typicality, they failed to establish commonality. In the second opinion, the Court denied defendants' motion for summary judgment on the non-California residents' state law claims. Defendants claimed that the state statute does not protect non-residents for acts outside the state. The Court held defendants failed to establish that their conduct occurred outside of California. Additionally, the application of California law would not violate due process requirements.