Fannie Mae-No Politics (FNMA)

[kthomp19]

Hi kthomp, I thought I saw a post somewhere during this trial that said interest was applied automatically to Fannie shares as a matter of Delaware law or something. Is this bullshit and how are we supposed to know if the judgment amount includes interest already or not?

I thought the Fannie class would get automatic pre-judgment interest, but the defendants filed a motion asking Lamberth to deny it, which would imply that he has discretion.

The Supreme Court of Delaware case MOSKOWITZ v. MAYOR & COUNCIL OF WILMINGTON says:

Interest is awarded in Delaware as a matter of right and not of judicial discretion.

That seems pretty cut and dried. While Moskowitz was from 1978, the cases Janas v. Biedrzycki from 2000 and Brandywine Smyrna, Inc. v. Millennium Builders, LLC from 2011 cite Moskowitz.

I don't see on what grounds Lamberth would deny pre-judgment interest on the Fannie class, but he has been biased towards the defendants all along so it wouldn't surprise me at all if he denies it anyway. This decision, among many others Lamberth made along the way, would likely be appealed by the plaintiffs.

Also was the $1.6B that plaintiffs were asking for pre-interest or post?

Pre. Though for Freddie that doesn't matter anymore; the jury denied pre-judgment interest and I doubt the appeals court will add it in.