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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.