Bill Ackman’s Pershing Square Capital Management filed a notice of voluntary dismissal for its Fannie Mae lawsuit in DC District Court last Friday, while another Ackman lawsuit, in the Court of Federal Claims, is still active, Value Walk reported.
Last month, US District Judge Royce Lamberth threw out Perry Capital’s and Fairholme Fund’s cases, to the chagrin of Fannie Mae and Freddie Mac shareholders. Both plaintiffs are appealing.
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Ackman’s case hasn’t yet been thrown out by Judge Lamberth, but he’s very likely to do it, seeing as Ackman’s case is identical to the former two. Value Walk suggests Ackman decided to drop the suit because he wants to avoid a lengthy appeals process. So dropping the suit could be a tactical move, not good bye.
Ackman might be reacting to Justice Department lawyers who have argued that the DC District Court Judge should halt the Fairholme case until after the appeals have played themselves out since, since the two lawsuits practically overlap. So that by dropping his case in the DC District Court, Ackman is avoiding being handled the same way by the government.
However, if Ackman has actually decided to abandon the Fannie Mae suit entirely, this could be big for anyone invested in the government-sponsored enterprise (GSE).