Mr Cooper Group Inc (COOP)

[mordicai]

Split: I mentioned the business judgment rule in regard to the posts seeking redress for alleged breach of fiduciary duty of the Coop directors. The business judgment rule does not apply to the actions/delay of the fdic. If Coop does have control of assets that belong to legacy shareholders the cause of action is termed a "conversion" not a "taking". Conversion is a tort that exposes you to liability for damages in a civil lawsuit. It applies when someone intentionally interferes with personal property belonging to another person. Imo any action for an unlawful taking against the FDIC under the 5th amendment is moot. If I remember correctly, at the time the action was pled, it did not yet apply to the taking of personal property and was therefore defective anyway. Then the senior note holders and debtor released the fdic of all causes of action under the Global Settlement Agreement and the 5th taking suit was later dismissed. Any cause of action legacy shareholders may have against the fdic would be via the Global Settlement Agreement and the statutory requirement that the fdic pay over to shareholders anything leftover in the receivership after all creditors have been fully paid. But there is the problem that WMI was the only shareholder of WMB, and abandoned the WMB shares which raises the question whether legacy shareholders would even have standing to complain.