Timothy J. Pagilara v. Federal Home Loan Mortgage Corporation (Case No. CL 2016-03860)

Young Conaway attorneys C. Barr Flinn, Emily V. Burton, Lakshmi A. Muthu, and Benjamin M. Potts filed a books and records action (the “Action”) on behalf of Timothy Pagliara against Federal National Mortgage Association, aka Fannie Mae, on March 14, 2016, in the Delaware Court of Chancery. 

The Action seeks books and records concerning the basis for and approval of Fannie Mae’s payment of $113.3 billion in apparently unlawful dividends to the U.S. Department of the Treasury under the “Third Amendment” to the stock purchase agreement between Fannie Mae and Treasury and related apparent breaches of fiduciary duty. Other cases around the country have challenged Treasury’s role and the role of the Federal Housing Finance Agency in Fannie Mae’s placement in conservatorship, sale of stock to Treasury, and the Third Amendment. Young Conaway’s litigation is the first to inquire into the role played by Fannie Mae’s board of directors in these apparent breaches of fiduciary duty. 

Young Conaway’s Action has been covered in numerous news articles:

Brian Honea, Fannie Mae Updates Foreclosure Time Frame Exhibit, DS News (3/16/16)

Brian Honea, Shareholder to Fannie Mae and Freddie Mac: Show Me the Corporate Records, DC News (3/15/16)

Delaware Corporate Law Once Again Invoked In Fannie Mae and Freddie Mac Litigation, Seeking Alpha (3/15/16)

Glen Bradford, A New Lawsuit Seeks to Inspect Books and Records of Fannie Mae Under DGCL, Seeking Alpha (3/15/16)

Scott Harrison, Nashville Financier Sues Federal Mortgage Giants, Seeks Corporate Records, Nashville Business Journal (3/15/16)

Abdul Wasay, Shareholder Tim Pagliara Demands Access to Freddie Mac and Fannie Mae Corporate Records, Bidness Etc. (3/15/16)

Tim Pagliara Files Suit to Inspect Fannie Mae and Freddie Mac Corporate Records, PR News Wire (3/14/16)

Todd Sullivan, GSE Reform: Tim Pagliara Files Suit in Delaware, Value Walk (3/14/16)

Matt Chiappardi, Fannie Mae Investor Wants Records to Probe Profit Sweep, Law 360 (3/14/16)

Amy Pritchard Williams, Roger L. Smerage, Federal Court of Appeals Holds that Fannie Mae and Freddie Mac are not Agents of the United States, but Open Questions Remain, Consumer Financial Service Watch (3/14/16)

Investors Unite: Pagilara v. Frannie Mae, Freddie Mac Documents