Fannie Mae Preferred S (FNMAS)

[rosen62]

Govt need only sweep 99.9% of profits

That would not be a "net worth" sweep but simply an outrageous dividend.

state law provides for the potential distribution of dividends to every class.

The lawsuit says a "preferred" share can only be preferred in reference to other classes. When sweeping all profits, there is only one class. Therefore, no preference.