Question: Countrywide Financial Corporation created for its employees a pension plan
Countrywide Financial Corporation created for its employees a pension plan that allowed employees to select how their pension plan amounts are invested, including investing in the common stock of Countrywide. When the value of the common stock of Countrywide Financial Corporation declined from over $40 per share to $6 in a six-month period in 2007 and 2008 due to the collapse of the subprime lending market, Countrywide employees sued Countrywide and its directors for breaching a fiduciary duty to the employees by not exercising its discretion to suspend both offering Countrywide stock as a plan investment and matching employees' investment in Countrywide stock. Has the board of directors breached a fiduciary duty to the employees?
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