Lawsuits you should know about

On September 8, 2008 a lawsuit was filed in the Southern District of New York Court on behalf of investors who held publically traded securities of Fannie Mae between November 16, 2007 and September 5, 2008. This lawsuit is seeking class action status.

Fannie Mae is a nickname for the Federal National Mortgage Association, or the FNMA. Fannie Mae is a private corporation that buys home mortgages, becoming a source of funds for mortgage lenders. The organization was created by Congress but is a private, shareholder owned company. The federal government has stepped in to take over the company in order to prevent it from failing. Together with Freddie Mac Fannie Mae guarantees almost half of the United States’ mortgage debt.

The lawsuit, filed by the Coughlin Stoia law firm, seeks damages, attorneys’ fees, and equitable or injunctive relief for those people who purchased shares between the dates mentioned above. The lawsuit was filed against four current and/or former executives of the company. The four individuals named in the lawsuit are: Stephen Ashley, chairman of Fannie Mae’s board; Daniel Mudd, president and CEO; Stephen Swad, former CFO; and Robert Levin, former executive vice president and chief business officer.

A class action lawsuit is a suit that is filed by one or more parties on behalf of a group (or class) of people all having the same grievance.

The deadline for joining the class action lawsuit is November 7, 2008.

This entry was posted on Wednesday, September 10th, 2008 at 2:35 pm and is filed under Lawsuits. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.