Industry News

Judge names lead plaintiffs in Fannie Mae lawsuit

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A federal judge has named two Ohio public retirement funds to lead a class of plaintiffs in a shareholder lawsuit against mortgage buyer Fannie Mae and some of its executive officers. Ohio Attorney General Jim Petro filed the securities fraud, class-action lawsuit on behalf of the Ohio Public Employees Retirement System and the State Teachers Retirement System, alleging Fannie Mae manipulated its earnings to artificially inflate the price of its common stock. The suit was filed in U.S. District Court in November, and represents shareholders who purchased Fannie Mae stock between Oct. 11, 2000 and Sept. 22, 2004. Judge Richard J. Leon of the U.S. District Court for the District of Columbia granted the motion for the two Ohio public retirement funds to be named lead plaintiffs. The complaint alleges Fannie Mae and its officers violated the Securities Exchange Act and Securities and Exchange Commission rules by not disclosing the company failed to apply generally accepted accounting ...