Securities Act Claims Tossed In Fannie Mae Suit

Law360, New York (November 25, 2009, 5:21 PM EST) -- A federal judge has ruled that Fannie Mae is exempt from liability under the Securities Act of 1933, dismissing claims under that law in a proposed class action accusing the mortgage giant of misleading investors about its soundness when it made $14 billion in securities offerings in 2007 and 2008.

Judge Paul Crotty of the U.S. District Court for the Southern District of New York on Tuesday granted a motion by Fannie Mae and its underwriters for the stock offerings to dismiss the Securities Act claims....
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