In order to increase stock offerings, Fannie Mae, Freddie Mac and other financial firms hid their true fiscal health, according to a wave of new shareholder class actions lawsuits. The suits allege that the financial firms and their executives violated fiduciary duties owed to shareholders by failing to advise shareholders of heir exposure to risky subprime mortgage investments. Firms included in the most recent filings are Freddie Mac, Fannie Mae, Morgan Stanley, Merrill Lynch, Goldman Sachs & Co., UBS Securities LLC and Wachovia Capital Markets LLC.
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