Free Motion for Partial Summary Judgment - District Court of Delaware - Delaware

Case 1:07-cv-00717-SLR

Document 12

Filed 01/14/2008

Page 1 of 3

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

) ) ) ) Plaintiff, ) ) vs. ) ) ANGELO R. MOZILO, HENRY G. ) CISNEROS, ROBERT L. DONATO, ) HARLEY W. SNYDER, JEFFREY M. ) CUNNINGHAM, MARTIN R. MELONE, ) ROBERT T. PARRY, OSCAR P. ) ROBERTSON, KEITH P. RUSSELL, ) MICHAEL E. DOUGHERTY, and ) COUNTRYWIDE FINANCIAL ) CORPORATION, ) ) Defendants. ) ___________________________________ ) ) ADAM BLUMBERG, ) ) Plaintiff, ) ) vs. ) ) ANGELO R. MOZILO, HENRY G. ) CISNEROS, ROBERT L. DONATO, ) HARLEY W. SNYDER, JEFFREY M. ) CUNNINGHAM, MARTIN R. MELONE, ) ROBERT T. PARRY, OSCAR P. ) ROBERTSON, KEITH P. RUSSELL ) MICHAEL E. DOUGHERTY, DAVID ) SAMBOL, KATHLEEN BROWN and ) COUNTRYWIDE FINANCIAL ) CORPORATION, ) ) Defendants. ) __________________________________ )
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 98 PENSION FUND,

CA No. 07 ­ 00372 *** (MPT)

Jury Trial Demanded

CA No. 07 ­ 00717 *** (MPT)

Jury Trial Demanded

PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT

Case 1:07-cv-00717-SLR

Document 12

Filed 01/14/2008

Page 2 of 3

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, plaintiffs hereby move for partial summary judgment on the grounds that the individual defendants, the directors of Countrywide Financial Corporation ("Countrywide"), breached their fiduciary duties of loyalty to it by causing Countrywide to repurchase approximately 60 million shares of its stock at an inflated price. At the same time, the board of directors was in possession of facts concerning material adverse changes in Countrywide's business and assets, and a majority of the board sold their own shares of the Countrywide stock to realize proceeds of approximately $373 million. The facts are in the accompanying Declaration of Alexander Arnold Gershon, dated December 20, 2007 with exhibits. Legal arguments are in the accompanying brief. Plaintiff seeks the greater of rescissory or out-of-pocket damages plus the present value of the difference, for 10 years, between the dividends on the preferred stock issued on August 22, 2007 and the common stock that Countrywide repurchased. Dated: January 14, 2008 BIGGS & BATTAGLIA /s/ Robert D. Goldberg ROBERT D. GOLDBERG (#631) 921 North Orange Street Wilmington, DE 19899 Tel: (302) 655-9677 Fax: (302) 655-7924 [email protected] Attorneys for plaintiffs Of Counsel: Barrack, Rodos & Bacine Alexander Arnold Gershon Regina M. Calcaterra Gloria Kui 1350 Broadway, Suite 1001 New York, New York 10018 (212) 688-0782

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Case 1:07-cv-00717-SLR

Document 12

Filed 01/14/2008

Page 3 of 3

Barrack, Rodos & Bacine Daniel E. Bacine William J. Ban Two Commerce Square 2001 Market Street B Suite 3300 Philadelphia, Pennsylvania 19103 (215) 963-0600

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Case 1:07-cv-00717-SLR

Document 12-2

Filed 01/14/2008

Page 1 of 2

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

) ) ) ) Plaintiff, ) ) vs. ) ) ANGELO R. MOZILO, HENRY G. ) CISNEROS, ROBERT L. DONATO, ) HARLEY W. SNYDER, JEFFREY M. ) CUNNINGHAM, MARTIN R. MELONE, ) ROBERT T. PARRY, OSCAR P. ) ROBERTSON, KEITH P. RUSSELL, ) MICHAEL E. DOUGHERTY, and ) COUNTRYWIDE FINANCIAL ) CORPORATION, ) ) Defendants. ) ___________________________________ ) ) ADAM BLUMBERG, ) ) Plaintiff, ) ) vs. ) ) ANGELO R. MOZILO, HENRY G. ) CISNEROS, ROBERT L. DONATO, ) HARLEY W. SNYDER, JEFFREY M. ) CUNNINGHAM, MARTIN R. MELONE, ) ROBERT T. PARRY, OSCAR P. ) ROBERTSON, KEITH P. RUSSELL ) MICHAEL E. DOUGHERTY, DAVID ) SAMBOL, KATHLEEN BROWN and ) COUNTRYWIDE FINANCIAL ) CORPORATION, ) ) Defendants. ) __________________________________ )
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 98 PENSION FUND,

CA No. 07 ­ 00372 *** (MPT)

Jury Trial Demanded

CA No. 07 ­ 00717 *** (MPT)

Jury Trial Demanded

Case 1:07-cv-00717-SLR

Document 12-2

Filed 01/14/2008

Page 2 of 2

CERTIFICATE OF SERVICE I hereby certify that on January 14, 2008, I electronically filed the foregoing PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT with the Clerk of Court using CM/ECF which will send notification of such filing(s) to the following: THOMAS A. BECK, ESQUIRE STEVEN J. FINEMAN, ESQUIRE RICHARD, LAYTON & FINGER, P.A. One Rodney Square P.O. Box 551 Wilmington, DE 19801 EDWARD P. WELCH, ESQUIRE EDWARD B. MICHELETTI, ESQUIRE SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP One Rodney Square, P.O. Box 636 Wilmington, DE 19899-0636 BIGGS & BATTAGLIA /s/ Robert D. Goldberg ROBERT D. GOLDBERG (#631) 921 North Orange Street Wilmington, DE 19899 Tel: (302) 655-9677 Fax: (302) 655-7924 [email protected] Attorneys for plaintiffs