DC Circ. Nixes Fannie Mae Shareholders’ Accounting Suits

Law360, New York (April 2, 2012, 2:08 PM EDT) -- The D.C. Circuit on Friday tossed without prejudice two shareholder derivative suits against Fannie Mae directors who allegedly presided over shoddy accounting processes, ruling that a lower court erroneously barred motions to voluntarily dismiss both cases.

The three-judge appeals panel also denied motions by two Fannie Mae shareholders challenging a district court order appointing the Federal Housing Finance Agency as substitute plaintiff in the suits.

The ruling stemmed from several shareholder derivative suits launched against Fannie Mae directors for their alleged failure to prevent accounting irregularities...
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