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.
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Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.