The U.S. Court of Appeals for the D.C. Circuit affirmed the $812 million judgment the firm secured against the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac on behalf of Fannie and Freddie shareholders.
The D.C. Circuit rejected each of the defendants’ multiple arguments for reversal, including that the U.S. Supreme Court’s decision in Collins v. Yellen required dismissal of the plaintiffs' claims. On April 21, 2026, partner Hamish Hume argued the appeal that the Collins decision only confirmed FHFA’s authority to adopt a Net Worth Sweep, not whether it breached shareholders’ rights. Coverage of the arguments included a post that commented on the effectiveness of Hamish's presentation and the “sang froid” nature of his approach.
The ruling caps years of litigation over the Sweep, which converted a dividend on Treasury’s Senior Preferred stock from 10% of the amount invested to 100% of Fannie and Freddie’s profits and net worth in perpetuity, leaving shareholders with no chance to earn any profits going forward. Numerous other claims relating to the Sweep were unsuccessful in the courts, meaning that the theory developed and advanced by BSF is the only successful theory to be brought against the Sweep.
BLOOMBERG LAW: Fannie, Freddie Investors Keep $812 Million Award Over Dividends
