In the news release, Whatley Drake & Kallas, LLC Files Securities Class
Action Lawsuit Against Fannie Mae on Behalf of Series S Preferred
Stockholders, issued 08-Oct-2008 by Whatley, Drake & Kallas, LLC over PR
Newswire, we are advised by the company that the headline should instead read
'Whatley Drake & Kallas, LLC Files Securities Class Action Lawsuit on behalf
of Fannie Mae Series S Preferred Stockholders'. The complete, corrected
release follows:
Whatley Drake & Kallas, LLC Files Securities Class Action Lawsuit on behalf of
Fannie Mae Series S Preferred Stockholders
NEW YORK, Oct. 8 /PRNewswire/ -- Whatley, Drake & Kallas, LLC (WDK) filed
a class action lawsuit in the United States District Court for the Southern
District of New York on behalf of purchasers of Fannie Mae's 8.25% Fixed-to-
Floating Rate Non-Cumulative Preferred Stock, Series S between December 11,
2007 and September 5, 2008, inclusive (the 'Class Period'). Fannie Mae (NYSE:
FNM) is the nation's largest source of financing for home mortgages.
Investors who purchased the Series S preferred stock during the Class
Period are eligible to pursue lead plaintiff status in this case, and can use
the counsel of their choice.
In the complaint, filed October 8, 2008, 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 are a member of this class and want to serve as lead plaintiff, you
must move the Court by November 7, 2008.
