The Real Deal Miami

Fannie, Freddie collapse prompts lawsuits

September 15, 2008 11:04AM

Fund owners and individual stockholders of mortgage giants Fannie Mae and Freddie Mac are rushing to the courthouse to demand relief after massive share price declines following last week’s government seizure of the two companies. On Thursday, attorney David T. Aronberg filed a lawsuit on behalf of shareholder Hilda Gordon, 84, of Delray Beach, in the U.S. District Court for the Southern District of Florida against Fannie Mae’s board and former executives. The lawsuit, alleging securities fraud and violation of Florida’s deceptive trade practices law, is seeking class-action status.