Quote: Chalk up a win for the plaintiffs in the legal fight over the profits of Fannie Mae and Freddie Mac.
The U.S. Judicial Panel on Multidistrict Litigation Thursday rejected a request by the Federal Housing Finance Agency to transfer four cases brought in federal courts around the country to a federal court in Washington, D.C.
“On the basis of the papers filed and hearing session held, we conclude that centralization is not necessary for the convenience of the parties and witnesses or to further the just and efficient conduct of the litigation,” the panel said in an order issued Thursday morning.
The cases were brought by investors asking courts to overturn a 2012 change to the bailout agreements of Fannie and Freddie that requires the companies to send virtually all their profits to the U.S. Treasury. The government sought to have cases pending in federal courts in Delaware, Illinois, Iowa and Kentucky moved to a federal court in Washington, D.C.