The subprime mortgage collapse has triggered a wave of class actions by angry shareholders who allege that Fannie Mae, Freddie Mac and underwriters cloaked the true financial health of the two mortgage giants, both now under conservatorship with the U.S. Treasury Department, to boost stock offerings. Recent lawsuits target a range of defendants, including Morgan Stanley, Merrill Lynch, Goldman Sachs, UBS Securities and Wachovia Capital Markets.
New Wave of Class Actions Filed in Wake of Subprime Collapse
The National Law Journal
October 13, 2008