9th Circ. Kicks Countrywide Fraud Suit To Del. High Court

Law360, Los Angeles (January 10, 2013, 10:17 PM EST) -- Citing a lack of controlling precedent, the Ninth Circuit on Thursday asked the Delaware Supreme Court to decide whether shareholders can revive their derivative suit against former Countrywide Financial Corp. officials after a merger that divested them of ownership in the company.

Thursday’s certified question of law addresses Arkansas Teacher Retirement System and other investors’ claims that their right to sue former Countrywide CEO Angelo Mozilo and other top officials for lying about lending practices survived when the company merged into Bank of America Corp., becoming...
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