Law360, New York (November 14, 2011, 4:58 PM ET) -- The Federal Housing Finance Agency, conservator of Fannie Mae, lost a bid on Monday to stay multidistrict shareholder litigation accusing the mortgage lending giant of overstating its profits by about $12 billion between 2001 and 2004.
In a text-only order, U.S. District Judge Richard J. Leon denied the Oct. 7 motion, which argued that the plaintiffs were unlikely to collect damages and that the litigation was a misuse of taxpayers' money.
“Fannie Mae owes its very existence today to the extraordinary and continuing massive financial support...
FHFA Can't Stave Off $12B Fannie Mae Fraud MDL
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