UPDATE: Trial in this litigation was held between July 24, 2023 and August 14, 2023. The trial resulted in a jury verdict in favor of the Plaintiffs. On March 14, 2025, the Court denied Defendants’ post-trial Motion for Judgment as a Matter of Law. On March 20, 2024, the Court entered a final judgment in the amount of $812,050,000 and an order approving a Plan of Allocation for the funds awarded under the Judgment. In April 2025, Defendants appealed the Judgment, the Order Governing Plan of Allocation, the Order Denying Defendants’ Motion for Judgment as a Matter of Law, and all prior Orders. Oral argument was held on April 21, 2026 before a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit. On July 24, 2026, the U.S. Court of Appeals for the District of Columbia Circuit issued an Opinion affirming the Judgment. Further updates will be provided on this website as they become available.

The action entitled In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations, Misc. Action No. 13-mc-1288 (RCL) (the “Action”) is pending in the United States District Court for the District of Columbia. The plaintiffs in the Action are Joseph Cacciapalle (“Cacciapalle”), Michelle M. Miller (“Miller”), Timothy J. Cassell (“Cassell”), and Barry P. Borodkin (“Borodkin”) (collectively, “Plaintiffs”). The defendants in the Action are the Federal Housing Finance Agency (“FHFA”), the Federal National Mortgage Association (“Fannie Mae”), and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively, “Defendants”).

The Action concerns the conduct of Fannie Mae, Freddie Mac, and their conservator, the FHFA, in connection with the implementation of the Third Amendment (the “Third Amendment”) to the Senior Preferred Stock Purchase Agreements (the “PSPAs”) between Fannie Mae, Freddie Mac, and the United States Treasury (“Treasury”), dated August 17, 2012. Plaintiffs allege that Defendants, by agreeing to the Third Amendment, breached the implied covenant of good faith and fair dealing in the stock certificates of Fannie Mae and Freddie Mac preferred stock and Freddie Mac common stock by implementing a Third Amendment that required Fannie Mae and Freddie Mac to pay the Treasury a dividend equal to the full amount of their net worth every quarter, minus a reserve buffer. Plaintiffs allege the Third Amendment effectively made it impossible for private shareholders to ever receive any dividend or liquidation distribution from Fannie Mae and Freddie Mac, no matter how profitable the companies were, in breach of the implied covenant inherent in shareholders’ contractual relationships with Fannie Mae and Freddie Mac.

Defendants have denied all of Plaintiffs’ claims and assert that the Third Amendment was lawful. Defendants contend that the Third Amendment was reasonable under the terms of the shareholders’ contract with Fannie Mae and Freddie Mac. The Court has allowed the Action to proceed as a class action and certified the above Classes. The persons to whom the Notice is addressed are “Class Members.” There is no money available now, and there is no guarantee that there ever will be.