Compliance March 15, 2009
Keller Rohrback Launches Another Stock Drop Investigation
There’s another stock drop suit brewing – and this one’s directed at Fannie Mae.
Reported by Nevin E. Adams
According to a press release, Seattle-based ERISA litigator Keller Rohrback L.L.P. says it is investigating Federal National Mortgage Association (“Fannie Mae”) for potential violations of the Employee Retirement Income Security Act of 1974 (“ERISA’). The law firms says that its investigation focuses on investments in Company stock in the Federal National Mortgage Association Employee Stock Ownership Plan.
Using language that is almost boiler-plate in such announcements, Keller Rohrback says its investigation involves concerns that Fannie Mae and other administrators of the plan “…may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plan.’ The law firm says that a breach “…may have occurred if the fiduciaries failed to manage the assets of the Plan prudently and loyally by investing the assets in Company stock when it was no longer a prudent investment for participants’ retirement savings.’
Oh – and if you are a participant in the Fannie Mae Employee Stock Ownership Plan…and held company stock in the plan…they’d like to hear from you.
Keller Rohrback serves as lead and co-lead counsel in numerous ERISA class action cases, including cases against Enron, WorldCom, Marsh & McLennan, Merrill Lynch, Bear Stearns, and Wachovia.