Fannie Mae Facing Another Class Action Lawsuit
The complaint alleges Fannie Mae and its top executives misrepresented or failed to disclose the troubled company’s true financial condition in public statements between April, 2001 and September, 2004.
The Washington, D.C.-based housing financer is already facing numerous lawsuits from investors claiming the company’s former management team violated securities laws by misrepresenting the company’s financials.
Securities and Exchange Commission investigators found that the company bent accounting rules between 2001 and mid-2004. Fannie Mae now faces a restatement that could reach more than $11 billion according to a report filed by MarketWatch.