Countrywide Financial Corp. must submit confidential information about its stock-granting practices to a police-pension fund that says the mortgage company gave stock rights to executives at “unusually suspicious and lucrative times,” the Los Angeles Times reported. The Oct. 2 ruling from Delaware Chancery Court forces the Calabasas-based company to turn over information such as meeting minutes, notes, presentations and slides regarding stock options to executives. There was no ruling on whether the company’s stock practices were illegal; the court demanded only that Countrywide reveal its inner workings in stock management, the Times reported. Countrywide denies wrongdoing. “We will continue to defend the sorts of allegations and any other such claims vigorously,” Countrywide said in a statement. The order comes on the heels of reports that Countrywide CEO Angelo Mozilo cashed stock options at a time when the company was beginning to experience financial problems. Analysts say Mozilo veered from the plan, something financial experts recommend against because of the suspicion it can raise. According to the Times, Mozilo twice changed his stock plan in late 2006 and early 2007 as the credit crunch was striking Countrywide.
