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Fannie, Freddie Shares Plunge After Investor Lawsuit Is Dismissed

Wall Street Journal, By Joe Light

Shares of Fannie Mae FNMA -35.69%  and Freddie Mac FMCC -36.36%  plunged Wednesday after a federal judge dismissed a lawsuit brought by investors over the government’s treatment of the mortgage-finance giants after the financial crisis.

A judge in the U.S. District Court for the District of Columbia on Tuesday dismissed claims brought against the federal government and U.S. officials for sending nearly all profits generated by Fannie Mae and Freddie Mac to the U.S. Treasury, a sweep that began last year.

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