Fannie Mae 2008 Annual Report Download - page 78

beneficiaries with regards to the ESOP’s investment in Fannie Mae common stock when it was no longer
prudent to continue to do so. Plaintiff purports to represent a class of participants and beneficiaries of the
ESOP whose accounts invested in Fannie Mae common stock beginning April 17, 2007. The complaint alleges
that the defendants breached purported fiduciary duties with respect to the ESOP. The plaintiff seeks
unspecified damages, attorneys’ fees, and other fees and costs and injunctive and other equitable relief. On
November 12, 2008, we filed a motion with the Judicial Panel of Multidistrict Litigation to transfer and
coordinate this action with all of the other recently filed section 10(b), section 12(a)(2) and ERISA suits. The
Panel granted our motion on February 11, 2009, and this case is now pending in the U.S. District Court for
the Southern District of New York for coordinated or consolidated pretrial proceedings. On February 13, 2009,
the district court entered an order appointing Tennessee Consolidated Retirement System as lead plaintiff on
behalf of purchasers of preferred stock, and appointing the Massachusetts Pension Reserves Investment
Management Board and the Boston Retirement Board as lead plaintiffs on behalf of common stockholders. On
January 8, 2009, Moore filed a joint motion with David Gwyer in the U.S. District Court for the District of
Columbia to, among other things, consolidate this action with Gwyer II and for the appointment on an interim
basis of co-lead counsel. The defendants filed a response on January 27, 2009 arguing that their motion was
premature. On February 9, 2009, the U.S. District Court for the District of Columbia entered an order
extending the time for defendants to respond to Ms. Moore’s complaint until April 14, 2009.
Gwyer v. Fannie Mae Compensation Committee, et al. (Gwyer II)
On November 25, 2008, David Gwyer filed a proposed class action complaint in the U.S. District Court for
the District of Columbia against our Board of Directors’ Compensation Committee, our Benefits Plans
Committee, and certain current and former Fannie Mae officers and directors. This case is based on ERISA.
Plaintiff alleges that defendants, as fiduciaries of Fannie Mae’s ESOP, breached their duties to ESOP
participants and beneficiaries with regards to the ESOP’s investment in Fannie Mae common stock when it
was no longer prudent to continue to do so. Plaintiff purports to represent a class of participants and
beneficiaries of the ESOP whose accounts invested in Fannie Mae common stock beginning April 17, 2007.
The complaint alleges that the defendants breached purported fiduciary duties with respect to the ESOP. The
plaintiff seeks unspecified damages, attorneys’ fees, and other fees and costs and injunctive and other
equitable relief. On December 12, 2008, we filed notice of a potential tag-along action with the Judicial Panel
on Multidistrict Litigation to transfer and coordinate this action with all of the other recently filed
section 10(b), section 12(a)(2) and ERISA suits. On February 11, 2009, the Panel ruled on the underlying
motion to transfer and consolidate, and on February 20, 2009, the Panel issued a conditional transfer order
transferring this case to the U.S. District Court for the Southern District of New York and allowing the
plaintiff until March 9, 2009 to file an opposition to the transfer. On January 8, 2009, Gwyer filed a joint
motion with Mary P. Moore to, among other things, consolidate this action with Moore v. Fannie Mae, et al.
and for the appointment on an interim basis of co-lead counsel. The defendants filed a response on
January 27, 2009 arguing that their motion was premature. On February 9, 2009, the U.S. District Court for
the District of Columbia entered an order extending the time for defendants to respond to Mr. Gwyer’s
complaint until April 14, 2009.
Weber v. Mudd, et al.
On December 3, 2008, Kristen Weber filed a proposed class action complaint in the U.S. District Court for the
Southern District of New York against certain current and former Fannie Mae officers and directors. This case
is based on ERISA. Plaintiff alleges that the defendants, as fiduciaries of Fannie Mae’s ESOP, breached their
duties to ESOP participants and beneficiaries with regards to the ESOP’s investment in Fannie Mae common
stock when it was no longer prudent to continue to do so. Plaintiff purports to represent a class of participants
and beneficiaries of the ESOP whose accounts invested in Fannie Mae common stock beginning November 9,
2007. The complaint alleges that the defendants breached purported fiduciary duties with respect to the ESOP.
The plaintiff seeks unspecified damages, attorneys’ fees, and other fees and costs and injunctive and other
equitable relief. On December 9, 2008, plaintiff voluntarily dismissed this action.
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