In a rare bit of good news for Countrywide, the Associated Press reports that a federal district court judge in Los Angeles has thrown out most of a shareholder suit alleging insider trading against former executives of the company.
The suit remains in place against former CEO Angelo Mozilo. The judge stated that adjustments to his automatic stock sale plan were unusual. The lawsuit alleges that he sold $478 million in shares between 2004 and 2008. The suit against other executives was dismissed, however. The judge found that there was no evidence to support allegations that those defendants entered into illegal stock transactions.
Countrywide was once the largest mortgage lender, but suffered a momentous decline in 2007 that led to its purchase by Bank of America.
CEO Mozilo was widely criticized for selling off stock as the value dropped.