FHFA Named Plaintiff In Fannie Mae Shareholder Suits

Law360, New York (June 26, 2009, 12:00 AM EDT) -- A district judge has allowed the Federal Housing Finance Agency, in its role as conservator, to step in as the plaintiff in four shareholder derivative suits launched against the government-sponsored mortgage backer, booting four individuals from the litigation.

As the conservator for Fannie Mae, the agency alone has the authority to pursue the shareholders' claims, Judge Richard J. Leon decided on Thursday in the U.S. District Court for the District of Columbia, citing a federal law enacted after the subprime mortgage crisis.

“When a federal statute's...
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