The law offices of Aronberg & Aronberg announced that it has filed a class action lawsuit in the U.S. District Court for the Southern District of Florida on September 11, 2008, on behalf of purchasers of Fannie Mae stock (Stock Symbol “FNM”).
The complaint names Fannie Mae’s entire Board and several of its former officers as defendants. The complaint alleges the Board violated the Securities Exchange Act of 1934 along with the Florida Deceptive Trade Practices Act by: (1) making false statements; (2) failing to disclose adverse conditions of the company causing stock purchasers to be deceived about the value of the company; and (3) artificially inflating the price of the stock.
Plaintiff alleges that the Board issued false positive statements about the Company. During the time where false positive statements were made by the Board, the value of the stock was artificially inflated. Fannie Mae’s stock dropped this week to below $1 per share, when the U.S. Government announced that it was taking over the company.
Fannie Mae is the nation’s leading provider of secondary mortgages. Fannie Mae buys or guarantees loans that are made by mortgage companies. This allows mortgage companies and banks to give loans with more liquid cash available. In turn, Fannie Mae raises cash by, in part, selling fixed income securities (ie: bonds) to investors. Fannie Mae, in part, makes money when the interest rate it charges for mortgages is greater than the rate it pays its bond investors.
“It is our intention to see to it that the thousands of past and current Florida stockholders of Fannie Mae are not swallowing millions of dollars in losses while the board members walk away with millions of dollars in compensation packages”, said attorney David T. Aronberg.
The Law Offices of Aronberg & Aronberg is active in litigation pending both in federal and state courts. You may visit our Fannie Mae web site www.fanniemaeclassaction.com for more firm information or contact:
David T. Aronberg, Esq.
2160 West Atlantic Avenue
Delray Beach, Florida 33445
Toll Free: 1-877-795-2993