Freddie Mac Shareholders Can't Sue Execs: 4th Circ.

Law360, New York (May 5, 2011, 10:05 PM EDT) -- The Fourth Circuit on Thursday denied Freddie Mac shareholders from pursuing their derivative suit against the government-owned mortgage company's former directors and officers in Virginia federal court, supporting the Federal Housing Finance Agency's bid to take over the complaint.

The appeals court affirmed a district court's ruling that the agency, created in 2008 to become Freddie Mac's conservator, was allowed to replace the shareholders as plaintiffs, paving the way for FHFA to kill the suit. U.S. District Court Judge Leonie M. Brinkema correctly interpreted the statute...
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