Lead Plaintiffs Defeat Defendants’ Motion to Dismiss in Fannie Mae Securities Litigation Concerning Subprime and Alt-A Exposure

August 30, 2012

 

 

On August 30, 2012, Judge Paul A. Crotty of the United States District Court for the Southern District of New York denied defendants’ motion to dismiss in In re Fannie Mae 2008 Securities, No. 08cv7831 (S.D.N.Y.).

 

In March 2012, Lead Plaintiffs amended their complaint to allege Fannie, Daniel H. Mudd, the Company’s former CEO and, Enrico Dallavecchia, the Company’s former Chief Risk Officer, made materially false and misleading representations about Fannie’s exposure to subprime and Alt-A loans. The Court rejected all of defendants’ arguments and stated that the case may proceed against the defendants. Click here to read Judge Crotty’s Opinion. In September 2010, Judge Crotty sustained allegations that defendants made materially false and misleading representations concerning Fannie’s risk control. Click here to read Judge Crotty’s September 30, 2010 Opinion.

 

Kaplan Fox is the court appointed lead counsel for the proposed class of purchasers of Fannie preferred stock in this action. The proposed class covers purchasers of Fannie Mae common and preferred stock between November 6, 2006 and September 8, 2008, the day Fannie was placed in conservatorship.

 

Kaplan Fox attorneys Frederic S. Fox, Donald R. Hall, Hae Sung Nam, Melinda D. Campbell, Irina Kobylevsky, and Jeff Campisi are working on this matter.