San Diego, CA -- (SBWIRE) -- 12/15/2014 -- A deadline is coming up on April 3, 2015 in the settlement reached in the securities class action lawsuit filed on behalf of investors who purchased shares of Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) between November 8, 2006 and September 5, 2008.

Investors who purchased a significant amount of shares of Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) between November 8, 2006 and September 5, 2008, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The settlement proof of claim form or detailed settlement notice for the settlement in the Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) Investor Securities Class Action Lawsuit 09/08/2008 can be downloaded at: http://shareholdersfoundation.com/case/federal-national-mortgage-association-fannie-mae-nyse-fnm-investor-securities-class-action-laws

In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is April 3, 2015. The class action administrator for this case is AB Data Ltd.

The lawsuit was originally filed in in the U.S. District Court for the Southern District of New York against Federal National Mortgage Association (Fannie Mae) over alleged violations of Federal Securities Laws between November 16, 2007 and September 5, 2008.

The complaint charges certain of Federal National Mortgage Association (Fannie Mae)'s officers and/or directors with violations of the Securities Exchange Act of 1934. Federal National Mortgage Association (Fannie Mae) is a shareholder-owned, government-sponsored enterprise of the United States federal government that is authorized to make loans and loan guarantees. It is the leading market-maker in the U.S. secondary mortgage market, which helps to replenish the supply of money for mortgages and enables money to be available for housing purchases.

The complaint alleges that between November 16, 2007 and September 5, 2008, defendants made materially false and misleading statements aboutFederal National Mortgage Association (Fannie Mae)'s business and prospects and misrepresented the company's financial statements. These false and misleading statements cause Federal National Mortgage Association (Fannie Mae)'s stock (NYSE: FNM) to trade at artificially inflated prices, reaching as high as $40.69 per share.

On July 7, 2008, a financial analyst at Lehman Brothers published a report suggesting that Federal National Mortgage Association (Fannie Mae) might need to raise as much as $46 billion in capital, causing the company's stock price to plummet 16% in a single trading day. Following that disclosure, former St. Louis Federal Reserve Board President, William Poole, suggested that Federal National Mortgage Association (Fannie Mae) was nearly insolvent and The New York Times disclosed that the federal government was making plans to place Federal National Mortgage Association (Fannie Mae) into a conservatorship. On July 13, 2008, the Treasury Department announced that it was making a temporary line of credit available to Fannie Mae and would purchase an equity stake if necessary to provide more capital. From July 7 through July 14, 2008, (NYSE: FNM) stock price declined over 48%. Finally, on Sunday, September 7, 2008, in the biggest government bail out in U.S. history, federal regulators seized control of Fannie Mae. On September 8, 2008, Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) stock opened at $1.91 per share, down from a close of $7.04 per share on September 5, 2008, a 72% decline.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public between November 16, 2007 and September 5, 2008, were as follows: (a) the decline in the U.S. housing market rendered Federal National Mortgage Association (Fannie Mae) undercapitalized; (b) Federal National Mortgage Association (Fannie Mae)'s December 2007 capital raise did not meet its capital needs; (c) Federal National Mortgage Association (Fannie Mae)'s May 2008 capital raise did not meet its capital needs; (d) although Federal National Mortgage Association (Fannie Mae) had more capital than its regulator required, it did not have "surplus capital" as defendants claimed; and (e) Federal National Mortgage Association (Fannie Mae)'s publicly disclosed financial results misrepresented the financial condition of the company.

Those who purchased shares of Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com