NEW YORK (TheStreet) -- Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) closed up 3.64% to $3.99, and up 3.93% to $3.97, respectively. after it was reported that their common shareholders, led by investor Bill Ackman’s Pershing Square Capital Management, plan to file on Friday the latest of many shareholder lawsuits against the federal government tied to the profits of the Government Sponsored Enterprises (GSEs), sources told TheStreet.com.
The suit joins others in contending the government wrongfully diverted profits from the GSEs to the Treasury, trampling the rights of shareholders.
In addition to the giant hedge fund, which is by far the largest non-government owner of common shares of GSEs Fannie Mae and Freddie Mac, numerous individual investors will join the lawsuit.
Shares of Fannie and Freddie are each higher in after-hours trading.
EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.