Fannie Mae Executives Get Securities Lawsuits Narrowed
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A lawsuit alleging ex-Fannie Mae Chief Executive Officer Daniel Mudd and other former officials misled investors about the company’s exposure to subprime and Alt-A mortgages was narrowed by a federal judge in New York.
Investors who bought Fannie Mae shares from November 2006 to September 2008, including a Massachusetts pension board, sued the company as a group in Manhattan federal court. U.S. District Judge Paul Crotty today ruled they could pursue securities-fraud claims against Fannie Mae and its executives and dismissed state-law claims and some related lawsuits by individual investors. Crotty also allowed other aspects of the litigation to continue.