Replies to post #565380 on Fannie Mae-No Politics (FNMA)

[AuntyMamie]

No. They don't. It's a shame. Many people sold. And didn't come back. But that's what happens when TSY and its cronies make two great companies into penny stocks.

[mrfence]

This type of question always comes up during shareholder suits especially because dates are stated when filing the suits leading some to believe they must have owned prior to the date and continue to own after the date to be included. BUT, when remedies are applied in favor of shareholders it's usually across the board to current shareholders as rights are passed with the sale of the shares. Sort of like a dividend date. There may be historical exceptions. This is just my general understanding.

[contrarian bull]

Many times former shareholders are awarded damages. I specialize in "troubled" stocks and dozens of times - years after I've sold a stock - I get a letter saying there was a judgement in favor of shareholders. I have to supply records showing the purchase dates and sell dates for shares I held during the time the damages occurred.

In the case of Fannie and Freddie damages occur every time another sweep is taken, so technically a successful shareholder class action suit would award everyone who owned shares between the beginning of the sweep and the end of the sweep if you held them on the date a quarterly sweep was ordered and taken. It would be a paperwork nightmare, but would be fair.

Usually these windfalls from class action suits give me just a few pennies a share and sometimes it's not worth the hassle of filing for $20. But sometimes it brings in half the value of the stock.

So - yes a class action shareholder suit could reward former share owners, but so far I know of no such suit being filed. Maybe if the NWS is officially ruled illegal we might start one.

QUESTION: If you owned 10,000 shares, sell 3,000sh, then 2yrs from now the courts award shareholders $$$$$ for the excess paid to UST. Does the shareholder get $$$$$ for the 3,000sh they once held, but sold 2yrs before court ruling or just the 7,000sh they hold?