Law360: Judge Declares Mistrial In Fannie, Freddie Profit Sweep Suit
November 7, 2022
US District Judge Royce C. Lamberth declared a mistrial after eight jurors could not reach a verdict in a case where Fannie Mae and Freddie Mac shareholders are seeking US$1.6 billion in damages from the Federal Housing Finance Agency. The shareholders claimed the government illegally liquidated the mortgage companies through an amendment to stock purchase agreements with the US Department of the Treasury following the 2008 housing market crash. The amendment, which was implemented after Fannie and Freddie were placed in conservatorship, ordered the mortgage companies to give their net worth to the government instead of 10% fixed dividend payments that were previously required. The Federal National Mortgage Association, or Fannie Mae, is represented by Meaghan VerGow of O’Melveny & Myers LLP.
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