A derivative suit brought against the former directors of Countrywide Financial Corp. alleging a breach of the duty of loyalty was dismissed for lack of standing by the U.S. District Court for the District of Delaware early this month.
Judge Sue L. Robinson followed Delaware precedent in her Oct. 7 ruling in the case, stating that the plaintiffs lost their standing to pursue a derivative claim when Countrywide merged with Bank of America in July and became a wholly owned subsidiary of the larger company. It was a stock-for-stock transaction.
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