BREAKING.NEW THEORY COULD MAKE ALL SHAREHOLDERS GET DAMAGES.
There are two theories: The ability to get remedies travels with the shares, outlined by judge Lamberth, and the second theory when a judge considers the class period upon a Class Action, like the one filed by Washington Federal on behalf of the absent parties.
WaFd established a cut-off date of September 5th, 2008, but the wrongful conduct denounced persists, a Takings claim both for the warrant and the use of FnF for state-action. According to a law firm specialized in Class Actions, "a class period may be lengthened or shortened after the initial complaint is filed, depending upon the facts and circumstances of the case." This could make the judge enlarge the class period through today.
The loss was the loss of the stock price on day one, but as of that date, the loss is the Opportunity Cost, that is, the warrant prevents the stocks from trading at their fair value of $250ps. Both themes are redressed with the cancellation of the warrant. The theme of the use of FnF for Public Policy is redressed with the release, but there are damages for 12 years of misconduct. This Takings case has prompted moral damages on the shareholders.
Remember that it's been labeled as Takings because a warrant is deemed Beneficial Ownership regardless of having been exercised and FnF report earnings on a diluted basis. That's from the legal and regulatory point of view, but from the economic point of view, the warrant makes FnF stocks trade at PER=0.2 times. The stocks are stripped out of most of their economic value.
Also, take into account that a temporary Takings is deemed permanent if the Govt actions have been done through legislation, because it assures that it will happen again. This is like the temporary floodings after the declaration of emergency.
The fact that the FHFA is unconstitutionally structured, with a single-headed structure, prompts the arbitrary decision-making that has ended up in an indefinite Conservatorship. Another reason to deem a temporary Takings as permanent.
Holders of JPS are NOT FnF shareholders.
