The subprime mortgage collapse has already triggered a wave of class actions by shareholders who allege that Fannie Mae, Freddie Mac and underwriters hid the true financial health of the two mortgage giants, both now under conservatorship with the U.S. Treasury Department, to boost stock offerings. All the suits make similar allegations and include many of the same Defendants, including Fannie Mae, Freddie Mac, Goldman Sachs & Co., Morgan Stanley, Merrill Lynch, UBS Securities LLC and Wachovia Capital Markets LLC.
The class actions are likely to incite even more litigation by wealthier individual and institutional investors. Investors who lost $100,000 or more on the fall of the stock of Freddie and Fannie likely will recover far more if they pursue their own suit or arbitration. Any person who has a significant amount at stake should consider filing suit. Individual investors who own a few shares belong in a class action. Investors with larger losses are generally better off filing individual suits. We plan on making significant resources available in our firm to help people who have been victimized and who need litigation help. Fortunately, we were already involved in litigation involving numerous financial institutions and that will help us take on a larger role if needed. If you need more information contact Dee Miles or Jay Aughtman at 800-898-2034.
Source: National Law Journal
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.