Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (91355)	10/4/2007 7:14:04 PM
From: Sr K	Read Replies (1) \| Respond to of 306849

biz.yahoo.com Fund to Eye Countrywide Stock Grants Thursday October 4, 4:25 pm ET By Alex Veiga, AP Business Writer Judge: Countrywide Must Turn Over Confidential Stock Option Plan Details to Mutual Fund LOS ANGELES (AP) -- A judge presiding over a lawsuit brought by a police retirement plan against Countrywide Financial Corp. has ruled the mortgage lender must turn over confidential details about the way it grants stock options. The Louisiana Municipal Police Employees' Retirement System, an investor in Countrywide, sought access to the practices after claiming the timing of stock grants to company executives was suspicious. In his ruling issued late Tuesday, Chancery Court Vice Chancellor John Noble in Wilmington, Del., told Countrywide to surrender slides, meeting minutes and other materials involving stock granted to its officers or executives, and information previously turned over to authorities as part of any review of such grants. In his order, Noble concluded the statistical evidence presented by the pension fund was "barely sufficient" for him to grant the inspection request. Still, he said the fund's allegation merited further inquiry. In a statement, Calabasas-based Countrywide said the "complaint presented no credible evidence of wrongdoing relating to the purported manipulation of option grants." Countrywide has struggled this year as mortgage defaults and foreclosures have spiked, particularly among borrowers with subprime loans. Its stock is off more than 50 percent from its $45.03 high on Feb. 2. The lawsuit was filed after an economist hired by the fund to study stock options at several companies raised the possibility that the timing of Countrywide grants could have been manipulated. Options are supposed to be issued and granted on the same date, but a number of companies in the late 1990s and early 2000s manipulated the timing to give recipients bigger gains when they exercised their options. The manipulation itself isn't necessarily illegal, but securities laws require companies to properly disclose the practice in their accounting and settle any charges that may result. The Corporate Library watchdog group issued a study last year that also raised questions about the timing of Countrywide stock grants. Countrywide shares fell 23 cents to end at $19.88 Thursday.