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Lawsuit Settled for $170m

Lawsuit Settled for $170mLawsuit Settled for $170m

Fannie Mae, headquartered in Washington, has reached a $170 million settlement of a lawsuit accusing it of misleading shareholders about its finances, risk management and mortgage exposure before it was seized by the US government during the 2008 financial crisis, Reuters reported. The settlement, which requires court approval, was disclosed in a Friday filing with the US District Court in Manhattan. The settlement allocates $123.8m to common stockholders and $46.2m to preferred stockholders between Nov. 8, 2006 and Sept. 5, 2008. Fannie Mae’s market value peaked during that period at more than $60b. It is now $2.71b.

Financialtribune.com