Achieved a landmark $812 million jury verdict for Fannie Mae and Freddie Mac shareholders
Plaintiff(s):
Holders of Fannie Mae and Freddie Mac junior preferred stock, and holders of Freddie Mac common stock (G&E as co-lead counsel)
Case type / claims:
Shareholder action challenging the Federal Housing Finance Agency’s 2012 “Net Worth Sweep,” which diverted all Fannie Mae and Freddie Mac profits to the U.S. Treasury.
Defendant(s):
FHFA as conservator; U.S. Department of the Treasury
Jurisdiction:
U.S. District Court for the District of Columbia
Outcome:
- As co-lead counsel, G&E secured an $812 million judgment after a full jury trial—one of the largest verdicts ever obtained on behalf of Fannie/Freddie shareholders.
- Successfully challenged the government’s unprecedented decision to route all profits of Fannie Mae and Freddie Mac to the U.S. Treasury “in perpetuity,” depriving shareholders of dividends and economic value.
