Aronberg Files Class Action vs. Fannie Mae
Class-Action Suit Filed Against Fannie Mae
updated 8:32 p.m. ET, Thurs., Sept. 11, 2008
DELRAY BEACH, Fla. – A Delray Beach law firm Thursday announced the filing of a class-action lawsuit on behalf of Florida purchasers of Fannie Mae stock. The Law Offices of Aronberg, Aronberg & Green said 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 and the Florida Deceptive Trade Practices Act by making false statements, failing to disclose adverse conditions of the company, causing stock purchasers to be deceived about the value of the company, and artificially inflating the price of the stock.
The lawsuit comes after the federal government took control of government-sponsored enterprises Fannie Mae and Freddie Mac.
The lawsuit alleges the board issued false positive statements about the company, artificially inflating its stock. Fannie Mae’s stock dropped this week to below $1 per share.
A statement by Aronberg, Aronberg & Green said the lawsuit was filed to ensure 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.”