Lawyers from O’Melveny & Myers have filed a motion in the U.S. District Court for the District of Columbia to stay proceedings in several cases that the firm is handling for Fannie Mae.
O’Melveny partners Jeffrey Kilduff, Robert Stern, and Michael Walsh Jr. on Monday moved for an immediate 45-day stay of discovery and any other judicial proceedings in the half-dozen pieces of securities, derivative, and ERISA litigation in which O’Melveny represents Fannie.
In the event that a conservator takes control of Fannie and Freddie, the banking laws that govern the two mortgage giants provide that conservator with the authority to request such a stay, allowing the companies a chance to catch their breath.
According to the motion, Fannie Mae notified all parties involved in the cases on Sunday afternoon that it planned to request the stay.
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