Did you invest in Fannie Mae preferred stock?
On September, 6, 2008, the Federal Housing Finance Agency placed Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) into conservatorship. By this time, Fannie Mae preferred shares that were sold at $25 in public offerings were rendered virtually worthless and ceased paying any dividends.
Brokerage firms such as Wachovia Securities n/k/a Wells Fargo Securities, Morgan Stanley, UBS, Smith Barney, Merrill Lynch, Banc of America and others were actively selling Fannie Mae preferred stock to their customers in secondary public offerings and in the aftermarket. Financial advisors with these and other firms often represented to their customers that Fannie Mae preferred shares were low risk investments that were backed by the U.S. government. Sonn Law Group believes that the types of representations which conveyed misleading information about Fannie Mae preferred shares is grounds for investors to bring claims against the brokerage firms that sold them Fannie Mae preferred shares. Sonn Law Group believes that brokerage firms and their financial advisors concealed Fannie Mae’s rapidly deteriorating financial condition and that investors would not have invested had they been told the truth about Fannie Mae’s dire problems.
If you believe that you have been misled as to the risk of investing in Fannie Mae preferred shares and wish to learn more about our investigation and current cases, please call us at toll free at 1-844-689-5754 or fill out the “contact us” forms.