U.S. sued by Ackman over Fannie and Freddie

|About: Fannie Mae (FNMA)|By:, SA News Editor

Bill Ackman's Pershing Square has sued the U.S. government, claiming that its stripping of Fannie Mae's (OTCQB:FNMA) and Freddie Mac's (OTCQB:FMCC) profit illegally short changes investors in the mortgage companies' common stock.

Hedge funds have previously sued the government over the two, although most of those lawsuits focused on the companies' preferred stock.

Pershing is accusing the government's "brazen" practice since 2012 of funneling virtually all profit from Fannie and Freddie to the U.S. Treasury Department.

Previously: Ackman reportedly leading another suit over GSEs