Shareholders from Fannie Mae (FNMA) and Freddie Mac (FHLMC) sued the US with allegations that the takeover in 2008 was illegal. The shareholders also added that the takeover of the housing lending giants had cost investors billions of dollars.
According to a complaint filed yesterday, the takeover of said mortgage companies by the Federal Housing Finance Agency has destroyed the value of Fannie Mae's and Freddie Mac's. They also added that the companies' common and preferred stock were destroyed and trampled their private ownership rights. The complaint was filed in the US Court of Federal Claims, Washington.
The shareholders seek US$41 billion worth of damages. The Hagens Berman Sobol Shapiro LLP law firm filed the said complaint.
FNMA and Freddie Mac investors renewed their interest in the firms. According to a data compiled by Bloomberg, Fannie Mae had its best year in 2012. A reported net income of US$17.2 billion was generated outpacing companies such as Wal-Mart Stores Inc., Berkshire Hathaway Inc. and General Electric Co.
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