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.
In Countrywide suit, 9th Circuit asks Delaware to explain fraud rule
January 10, 2013
This article requires free registration
This article requires free registration to The Recorder. Please sign in or register to read the full text.