Class Actions

Girard: Private Civil Actions Still Have Key Role in ARS Meltdown

Last month, Michael Rivera and Erik Frias of the Fried Frank law firm argued in a Legal Times article (discussed here) that the steady stream of ARS settlements between banks and state regulators may effectively shut down pending and future private litigation on behalf of auction securities investors by making investors whole.  The authors stated that ”the losses of individual…

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Latest Securities Class Action Against Fannie Mae Adds Underwriters as Defendants

On Tuesday, a securities class action lawsuit was filed against several current and former top executives of Fannie Mae (FHM), as well as a group of five underwriters.  The lawsuit alleges misrepresentations related to a $2 billion preferred share offering by the company in May 2008 of 8.25% Non-Cumulative Preferred Stock, Series T. Like a similar lawsuit filed last week,…

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Pension Funds Examine Legal Options Related to Freddie Mac and Fannie Mae

Gerald Silk, partner at Bernstein Litowitz Berger & Grossmann, tells Global Pensions that the firm has had a number of inquiries by pension systems about potential litigation related to the Fannie Mae and Freddie Mac “debacle.” The article notes that bringing securities class actions involving these companies will be impacted by the unprecedented intervention of the federal government, which has…

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Subprime-Related Litigation Study: Securities Cases Most Common in Q2 2008

Navigant Consulting released a study today showing that 607 subprime-related cases were filed in federal courts over the 18 months though June 2008.  Of the 607 subprime-related cases, 310 were filed in the first six months of 2008 alone. The study showed that securities cases were the most common type of subprime-related cases in the second quarter of 2008, accounting…

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Distribution of $7.2 Billion Enron Settlement May Come in 2008

Dan Newman of Coughlin Stoia Geller Rudman & Robbins, the law firm leading the Enron securities class action settlement, stated Tuesday that the firm is hopeful that it can make a distribution to Enron shareholders of the $7.2 billion settlement fund before the end of the year.  He added that the order on Monday by U.S. District Judge Melinda Harmon approving a distribution plan is…

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Shareholders File Securities Class Action Against Fannie Mae

Fannie Mae shareholders filed a securities class action in the SDNY on Monday against the company’s chairman Stephen Ashley, ex-chief executive officer Daniel Mudd and two other former executives.  According to a report on Bloomberg, the lawsuit alleges that the defendants misled investors about the mortgage company’s finances, specifically whether Fannie Mae had adequate capital. The lawsuit does not name Fannie Mae…

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