Countrywide asks for delay in shareholder suits

[EV_Ares]

Market News -- NOTE: Lets see if Countrywide gets what it asks for or the investors get what they deserve to get!

LOS ANGELES (Reuters) - Lawyers for Countrywide Financial Corp (CFC.N: Quote, Profile, Research) and its directors asked a federal judge in Los Angeles to postpone discovery in an investor lawsuit for several weeks in what opposing attorneys say is a "blatant attempt" to shield company directors from investor claims.

In documents filed on Thursday with the U.S. District Court in Los Angeles, Countrywide's lawyers said they should not have to hand over "four years' worth of all-encompassing discovery" until after U.S. District Judge Mariana Pfaelzer decides whether there is enough evidence for the case to go to trial.

A hearing on the dismissal motion is set for April 28.

Investors suing Countrywide directors and executives for reaping hundreds of millions from alleged insider trading want Pfaelzer to speed up discovery and allow them to try their claims before the company is acquired by Bank of America Corp (BAC.N: Quote, Profile, Research) after June 30 -- an event they say will nullify their claims.

Alternatively, the investors led by Arkansas Teacher Retirement System and Fire & Police Pension Association of Colorado asked Pfaelzer to set up a "constructive trust" to preserve those claims for trial after the merger closes.

Countrywide and its directors face three similar investor lawsuits -- two in Los Angeles and one in Delaware Chancery Court -- challenging the proposed $3.7 billion merger with Bank of America as too cheap.

The two Los Angeles suits in federal and state courts also bring shareholder derivative claims on behalf of Countrywide to force its directors and officers to return alleged insider trading profits.

That would increase the company's value and presumably force Bank of America to pay shareholders more. Continued...

Link: http://www.reuters.com/article/ousiv/idUSN1445280320080315