Replies to post #698144 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Isn't the Kelly suit Direct and/or Derivative?

It's both. The direct claim is paragraphs 106-120, and the alternate derivative claim is paragraphs 121-127.

But the direct claims won't help current shareholders, just like Washington Federal (which is only direct claims) won't. The Kelly plaintiffs got to see how Judge Sweeney handled direct versus derivative claims, and made the smart decision to include both. I doubt both survive, but one of them should. And I certainly hope it's the derivative side.

Regarding the Statute of Limitations - am I correct that Kelly and Wash. Federal have the same law firm. I am speculating that Kelly wanted to wait and see the Collins decision before spending the money?

Dont you think it is unlikely that Kelly would have waited so long if they did not think the Statute of Limitations tolled?

I believe you're right about the law firm being the same for Kelly and Washington Federal, but I don't know what their reasoning was in regards to waiting this long to file the Kelly suit.

I sure hope they know what they're doing in regards to the statute of limitations.

Dont you think Collins actually makes Kelly's claim stronger if it gets beyond the Statute of Limitations.?

Not really. Collins was a very different case, seeking injunctive relief. I'm afraid that Collins (and its sister cases Rop and Bhatti) are on very thin ice right now. I read the Collins brief to the Fifth Circuit and I thought its arguments were very weak.