United States DC Circuit

In a shareholder derivative suit alleging that the directors of Fannie Mae failed to exercise sufficient oversight of the company's accounting practices, judgment of dismissal is affirmed where: 1) the Fannie Mae statute conferred federal subject-matter jurisdiction; and 2) demand futility did not apply to excuse plaintiffs from making a pre-suit demand on Fannie Mae's directors as plaintiffs did not show that a majority of the directors could not independently and disinterestedly consider a demand.

Appellate Information

• Argued 04/23/2008
• Decided 08/08/2008
• Published 08/08/2008

Judges

• Before:  TATEL, BROWN, and KAVANAUGH, Circuit Judges.

Court

• United States DC Circuit

Counsel

• For Appellant:
  
• Randall J. Baron argued the cause for appellants.   With him on the briefs were Eric A. Isaacson and Benny C. Goodman III.


• For Appellees:
  
• Maureen E. Mahoney argued the cause for appellees.   With her on the briefs were Everett C. Johnson, Jr., J. Scott Ballenger, Jeffrey W. Kilduff, Michael J. Walsh, Jr., Barbara Van Gelder, James D. Wareham, James E. Anklam, John J. Clarke, Jr., Earl J. Silbert, James Hamilton, Rhonda D. Orin, Daniel J. Healy, William K. Dodds, Stephanie A. Joyce, Glenn B. Manishin, David E. Barry, William A. Krohley, Christopher C. Palermo, Steven M. Salky, Eric Delinsky, Holly A. Pal, Kevin M. Downey, and Paul Mogin.  Barbara A. Miller entered an appearance.