Del. High Court Rules Countrywide Merger Bars Investor Suit

Law360, Wilmington (September 10, 2013, 7:26 PM EDT) -- The Delaware Supreme Court ruled Tuesday that former investors suing Countrywide Financial Corp. cannot maintain their derivative suit now that the merger into Bank of America Corp. has divested them of their ownership interests, answering a question of law from the Ninth Circuit.

The investors have been trying to revive their claims in California that former Countrywide CEO Angelo Mozilo and other top brass lied about lending practices, and had argued that alleged fraud in the time before the $4 billion Bank of America deal trumps...
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