Del. judge mulls settlement in Countrywide lawsuit

WILMINGTON, Del. (AP) - A Delaware judge has granted preliminary approval of a proposed settlement in a shareholder lawsuit against mortgage lender Countrywide Financial. Vice-chancellor John Noble on Thursday rejected a request by attorneys representing Countrywide shareholders in a federal lawsuit in California asking him to reject the proposed settlement. Lawyers representing public employee pension funds in four states argued that the Delaware settlement could affect their own claims in California against officers and directors of Countrywide, whose troubles led to a buyout by Bank of America that was completed this week. Attorneys for Countrywide and the Delaware plaintiffs said the settlement would cover similar direct claims by shareholders, but would not affect certain derivative claims like those raised in... [read full story]