NEW YORK (TheStreet) --aShares of Fannie Mae awere down 48.33% to $1.38 and shares of Freddie Mac awere lower by 46.97% to $1.40 in pre-market trading today, after investors lost a legal battle to make the companies share profits with private shareholders, Bloomberg reports. Both stocks are flat at the start of trading today.a Investors sued over a breach of contract regarding allegedly promised dividends and liquidation preferences, but a U.S. District Judge ruled against investorsaafter stating that the government is allowed to take "nearly all" of the companies' profits into the Treasury, as part of an amendment to the companies' 2012 bailout agreements, Bloomberg added. Investors, including Bruce Berkowitz's Fairholme Capital Management LLC, have claimed they were unjustly blocked from participating in the profits Fannie Mae and Freddie Mac earning following the bailout. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. At stake in the cases is almost $33 billion, the face value of what Bloomberg describes as "potentially worthless preferred shares in the companies," and efforts by shareholders to earn congressional support for their plan to revive Fannie Mae and Freddie Mac. FNMA data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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