Shareholders File Lawsuit Against FHFA & US Treasury on Behalf of Fannie Mae

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Bear in mind, that the parties are not suing Fannie Mae’s board or management, but are defending the company against its conservator, the FHFA.  Thus, the defendant is the Federal government. Here is a definition of a derivative lawsuit from Wikipedia:

"shareholder derivative suit is a lawsuit brought by a shareholder on behalf of a corporation against a third party. Often, the third party is an insider of the corporation, such as an executive officer or director. Shareholder derivative suits are unique because under traditional corporate law, management is responsible for bringing and defending the corporation against suit. Shareholder derivative suits permit a shareholder to initiate a suit when management has failed to do so." http://en.wikipedia.org/wiki/Derivative_suit




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