Fannie Mae Facing Another Class Action Lawsuit
On Friday, March 24, 2005, a class action lawsuit was filed against Fannie Mae in the District of Columbia federal court. Attorneys from the Law Office of Frank J. Johnson filed the complaint on behalf of traders in Fannie Mae stock options against the mortgage giant.
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.