Countrywide Merger Doesn't Bar Investor Suit, Del. Court Told
By Jamie Santo
Law360, Wilmington (July 3, 2013, 9:10 PM EDT) -- Former Countrywide Financial Corp. shareholders argued Wednesday they still have standing to pursue derivative claims against its top brass despite a subsequent merger, telling the Delaware Supreme Court the officials' alleged fraud leading up to the deal trumps the fact it divested the investors of ownership in the company.
Countrywide investors led by the Arkansas Teacher Retirement System had been proceeding in California federal court with a derivative suit alleging CEO Angelo Mozilo and other officials' fraudulent conduct caused shares to nosedive, but were stymied when...