In Countrywide suit, 9th Circuit asks Delaware to explain fraud rule

Taking action in a long-standing appeal on behalf of institutional investors in Countrywide Financial, the Ninth Circuit has certified a question to the Supreme Court of Delaware addressing standing requirements for derivative shareholder actions. The circuit is seeking clarification on whether a derivative suit may survive following a merger that plaintiffs claim was "necessitated by, and is inseparable from" fraud alleged in the legal action.

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