Plaintiffs representing retirement pension plans in a major securities litigation case against former Fannie Mae executives saw their case against one of those executives thrown out of court this week.
U.S. District Judge Richard Leon with the District of Columbia agreed to dismiss securities fraud claims filed against former Fannie Mae senior vice president and controller Leanne Spencer on the grounds that the plaintiffs did not show in pleadings that Spencer ‘knowingly’ intended to deceive Fannie Mae investors.
The two key plaintiffs include the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio.
The retirement funds included Spencer in the initial case as a defendant, claiming Spencer made “false statements about the soundness of Fannie Mae’s accounting, risk management and internal controls.” The period affected by these claims extended from 2001 through 2004.
The overall case against Spencer and other former Fannie Mae executives claims the company’s leadership ended up misleading investors on matters that eventually led to losses.
The judge added, “upon review of plaintiff’s evidence, this court concludes that plaintiffs have failed to put forth sufficient evidence from which a reasonable jury could find that Spencer had such an intent.”