COUNTRYWIDE-SETTLEMEN

Countrywide Financial Corp. lost a bid to settle a shareholder lawsuit over its $2.5-billion takeover by Bank of America Corp. when a judge ruled the agreement would improperly wipe out some investor claims.

The proposed settlement, which gave shareholders more information about Bank of America’s July purchase of Countrywide, would wrongfully relieve the mortgage lender of having to face fraud allegations, Delaware Chancery Court Judge John Noble said.

“Ensnared by the revised stipulation” in the settlement is an allegation that Bank of America’s chief executive, Kenneth D. Lewis, in January 2008 made false statements in which he “dismissed rumors of Countrywide’s impending bankruptcy and asserted that Countrywide had a very impressive liquidity plan,” Noble wrote Tuesday.

SRM Global Fund contends it held on to its Countrywide stock based on the Lewis statement, and lost $80 million, Noble wrote. To resolve the case, Noble suggested choices including allowing investors to opt out of a settlement, filing a separate claim on Lewis’ statement or “abandoning” the case without a settlement.

Addressing claims of an inadequate transaction price, Noble said, “There is precious little doubt that the consideration received by the Countrywide shareholders was anything other than at least fair.”

“The settlement agreement already contained a carve out for statements made prior to the announcement. We are reviewing options and are hopeful that the settlement will ultimately be approved,” a Bank of America spokeswoman said.

Calabasas-based Countrywide faced bankruptcy last year amid payment defaults and foreclosures tied to subprime mortgages.

Bank of America shares rose 23 cents to $7.05.