More than 60 former employees of Fannie Mae (OTCQB; FNMA), all of whom are US citizens of Indian nationality, have filed a lawsuit in federal court accusing the government-sponsored enterprise of discrimination.
The lawsuit stated the plaintiffs learned of their termination on April 3 through a Microsoft Teams call and had no previous warning that their employment was being ended. The lawsuit said the employees were being fired “with cause for violating Fannie Mae’s Charitable Giving program for fraud.”
In addition to the shared ethnic heritage of the plaintiffs, the lawsuit noted all but one of the fired employees were over the age of 40.
In April, Federal Housing Finance Agency Director Bill Pulte announced Fannie Mae fired over 100 employees who were allegedly “caught engaging in unethical conduct, including facilitating fraud, against our great company.” Pulte, who appointed himself chairman of Fannie Mae’s board of directors, did not identify the actions that led to the mass firings, nor did he state if this conduct was distinctive to specific departments within Fannie Mae. It is also unclear what, if any, role Elon Musk’s Department of Government Efficiency played in identifying the alleged fraud.
Neither Fannie Mae nor Pulte have publicly commented on the lawsuit.
Abolish Fannie Mae entirely.