LITTLE ROCK, Ark., Oct. 10, 2008 (GLOBE NEWSWIRE) -- Emerson Poynter LLP (www.emersonpoynter.com), a national law firm with offices in Little Rock, Arkansas and Houston, Texas, announces that it filed, on October 8, 2008, a class action lawsuit against Fannie Mae (NSYE:FNM) on behalf of purchasers of Fannie Mae's 8.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series S who purchased the stock between December 11, 2007 and September 5, 2008, inclusive (the "Class Period"). Fannie Mae is the nation's largest source of financing for home mortgages. The action was filed in the United States District Court for Southern District of New York (08-CIV-8609).
In the complaint, plaintiffs allege that the defendants -- including several former officers and directors of Fannie Mae and the underwriters responsible for the Series S preferred stock offering -- knew or recklessly disregarded that Fannie Mae was grossly undercapitalized, in violation of Federal regulations, because of its overwhelming investments in subprime and Alt-A mortgages. These assets were not properly accounted for in violation of Generally Accepted Accounting Principles (GAAP). Fannie Mae's capital deficiency also was concealed because its deferred tax assets and guaranty obligations were not properly accounted for in violation of GAAP.
Since Fannie Mae was placed in conservatorship by the federal government, the price of its Series S preferred stock has declined precipitously from the $25 offering price and reached a low of $1.51/share -- roughly 94% less than its offered value -- on September 18, 2008.
If you purchased Fannie Mae's 8.25% Fixed to Floating Non-Cumulative Preferred Stock, Series S between December 11, 2007 and September 5, 2008, please contact us about your rights and potential claims. If you wish to serve as lead plaintiff, you must move the court by November 7, 2008.
Emerson Poynter LLP has a national and international class action legal practice with offices in Little Rock, Arkansas and Houston, Texas. Emerson Poynter handles complex commercial litigation with a concentration in those cases that involve violations of federal and state securities or antitrust laws, the Employee Retirement Income Security Act of 1974 ("ERISA"), and consumer protection laws. The Firm has substantial experience in litigating large complex class action cases and serves in a leadership position in numerous cases.