SOURCE: Brower Piven, A Professional Corporation

October 10, 2008 20:10 ET

Brower Piven Encourages Investors Who Have Lost $300,000 Investing in Fannie Mae Preferred Stock, Series T to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the November 7, 2008 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - October 10, 2008) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the Federal National Mortgage Association ("Fannie Mae" or the "Company") (NYSE: FNM-PT) offering of 8.25% Non-Cumulative Preferred Stock, Series T (initially offered to the public on or about May 13, 2008) for the period from May 13, 2008 through September 6, 2008 (the "Class Period"). The class includes investors who purchased shares on the offering or afterwards, in the market.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than November 7, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.

The complaint charges Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets, Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC, Wachovia Capital Markets LLC (collectively, the "Underwriter Defendants") and four senior executives of the Company with violations under the Securities Exchange Act of 1934. The complaint alleges that the defendants participated in offering for sale approximately 80 million shares of non-cumulative, non-convertible, perpetual fixed-rate preferred stock, at an offering price of $25 per share as part of the Company's effort to raise new capital to shore up the Company's balance sheet so that capital requirements could continue to be satisfied, enhance shareholder value and provide stability to the secondary mortgage market. After it was revealed that Fannie Mae had overstated its capitalization, the value of the 8.25% Non-Cumulative Preferred Stock, Series T, declined substantially.

If you have suffered a net loss for all transactions in the Federal National Mortgage Association offering of 8.25% Non-Cumulative Preferred Stock, Series T during the period between May 13, 2008 through September 6, 2008, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/332-0030
    Email Contact