Countrywide Investor Can't Nix Standing Rule, Court Says

Law360, New York (August 31, 2012, 5:27 PM EDT) -- A California appeals court on Thursday rejected a former Countrywide Financial investor's bid to revive a derivative suit against the company's former executives, saying a landmark 2010 Delaware Supreme Court decision does not support loosening the fraud exception to the continuous ownership rule, which holds that a shareholder loses standing to sue if shares are forfeited due to a company merger.

In a precedential opinion, Second Appellate District Judge Jane L. Johnson said the Delaware Supreme Court's decision in Arkansas Teacher Retirement System v. Caiafa doesn't...
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