The Federal National Mortgage Association (Fannie Mae) will pay $170 million to settle a class action alleging that its statements caused investor losses.
The Boston Retirement System, one of the court-appointed lead plaintiffs for a proposed common-shareholder class, heralded the case for achieving what a similar lawsuit against Federal Home Loan Mortgage Corp., better known as Freddie Mac.
“Unlike the plaintiffs in the Freddie Mac case, we were able to successfully allege that investors’ losses were caused by Fannie Mae’s statements and actions rather than by the financial crisis,” Boston Retirement chairman Daniel Green said in a statement.
In addition to Boston Retirement, the Southern District of New York had appointed the Massachusetts Pension Reserves Investment Management for the proposed common-shareholder class.
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