Posted on November 2, 2017
The Class Plaintiffs asked Judge Lamberth for permission to file a second amended complaint late yesterday, and a copy of the preferred shareholders’ request and proposed second amended complaint are attached to this e-mail message.
The second amended complaint:
(A) adds direct claims against FHFA and the Companies for breach of fiduciary duties (pars. 86-93 and 166-177);
(B) adds claims against FHFA based on the fact that the Net Worth Sweep is barred by Delaware and Virginia law applicable to preferred stock (pars. 94-97 and 178-192);
(C) shows Judge Lamberth what’s been uncovered in discovery that was previously unavailable to him (pars. 11, 40, 52-55, 61-65 and 68-70);
(D) names Fannie Mae and Freddie Mac as defendants with respect to all claims (to the extent they were not already named) (pars. 124-192);
(E) backs away from claims against Treasury for the time being; and
(F) withdraws the Taking claim previously made in District Court.
We should anticipate seeing an order from Judge Lamberth granting the Class Plaintiffs’ unopposed request in the coming days or weeks, and FHFA, Fannie and Freddie filing their motion to dismiss the Class Plaintiffs’ amended complaint on Jan. 10, 2018.13-mc-01288-0062