Lawsuits Claim 41 Former Fannie Mae Employees Were Defamed
Two complaints both seek $1 million in damages for each former employee for total of $82 million
Two civil lawsuits have been filed against the Federal National Mortgage Association (Fannie Mae) on behalf of 41 former employees of the company, who allege they were defamed “nationwide” by Fannie Mae after they were summarily fired on April 2, 2025.
One of the suits names as defendants Fannie Mae as well as its Chairman and Federal Housing Finance Agency (FHFA) Director William Pulte, and the other names Fannie Mae and the company’s President and CEO Priscilla Almodovar. The complaints were filed Tuesday, August 12 in Fairfax County, Va. Circuit Court, and each seeks $1 million in damages for each of the group of 41 plaintiffs, so the suits together seek a total of $82 million.
Milton C. Johns of Executive Law Partners, PLLC filed both the complaints, which describe how Fannie Mae fired dozens of employees by video conference call on April 3, 2025, without notice, warning, or due process for allegedly violating the Company’s Charitable Giving program. These all were longtime employees in good standing, the lawsuits claim, alleging the company subsequently defamed them via press releases and TV interviews.
Fannie Mae announced on April 8, 2025 it had fired more than 100 workers “for unethical conduct, including facilitating fraud.” FHFA Director and Fannie Mae Chairman Pulte said the following day on Fox News that Fannie Mae had found that some workers “were making donations to the charity and then getting kickbacks, the internal company charity.”
NMP has reached out to Fannie Mae and FHFA for comments or any statements they may have on these lawsuits but so far has received no response. This article will be updated with any new information received.
These two new lawsuits follow on the heels of another that appears to address the same mass-firing incident. That earlier suit, filed July 21 in U.S. District Court, alleges Fannie Mae engaged in age- and nationality-based employment discrimination for more than 60 former employees of the company, all of Indian nationality and most of whom had long tenures.