Correction, 2/28/14, 11:11 a.m. EST: An earlier version of this story misidentified the type of fund that Fairholme Capital is and the relationship to its founder. It is a mutual fund manager, and Bruce Berkowitz manages the fund.
An investor group won a key discovery motion Wednesday in one of the lead cases challenging the government conservatorship of Fannie Mae and Freddie Mac. Lawyers for the plaintiffs say the ruling may bring them closer to brokering a deal for preferred shareholders who lost billions in expected profits when the terms of the government’s Fannie and Freddie takeover suddenly changed in mid-2012.
