Perry Appeals Fannie, Freddie Dismissal

Oct 3 2014 | 4:44am ET

Perry Capital has appealed the dismissal of its lawsuit challenging the U.S. Treasury Dept.’s move to seize the profits of Fannie Mae and Freddie Mac.

A federal judge in Washington this week junked both Perry’s lawsuit and one filed by Fairholme Capital Management. U.S. District Judge Royce Lamberth found that both the law and the terms of Perry’s and Fairholme’s preferred shares allowed the government to change the terms of the mortgage giants’ $187.5 billion bailouts.

Perry’s lawyers beg to differ.

“The district court’s decision overlooks important points of law and improperly resolved key questions of fact based on the government’s cherry-picked record,” the appeal reads.

Fairholme has yet to indicate whether it will appeal.

The hedge funds’ lawsuits were just two among about 20 filed in opposition to the Treasury’s move. Pershing Square Capital Management, whose investment is primarily in common shares rather than preferred, still has a suit pending.

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