Speculators in Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA)’s and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s common stock are gearing up again on hopes a lawsuit will fare better in appellate court or other suits will gain traction.

Both Perry Capital and Fairholme gave indications of pursuing with their suit.

Fannie Mae, Freddie Mac: Court’s dismissal of two suits

As reported on Tuesday, a judge in the U.S. District Court for the District of Columbia dismissed claims brought against the federal government and U.S. officials by Perry Capital LLC and Bruce Berkowitz’s Fairholme Funds Inc. They filed a case for breach of contract over allegedly promised dividends and liquidation preferences and what they called an illegal “taking” under the U.S. Constitution.

Royce Lamberth, U.S. District Judge, rejected their claims, stating that Congress had, in effect, given the GSE’s regulator and the Treasury Department the power to take the companies’ profits as a provision under the Housing and Economic Recovery Act.

Hedge fund manager Bill Ackman’s Pershing Square Capital is also involved with an active suit against the government on Fannie Mae and Freddie Mac. However, Tuesday’s dismissal by the court didn’t cover Pershing Square’s lawsuit.

Suit will be pursued

Following the court’s dismissal of the suit, Fairholme Capital Management LLC, the investment management firm headed by Bruce Berkowitz, vowed to pursue the rights of private shareholders to profits from Fannie Mae and Freddie Mac.

Hedge fund manager Bill Ackman’s Pershing Square Capital is also involved with an active suit against the government on the two GSEs. However, Tuesday’s dismissal by the court didn’t cover Pershing Square’s lawsuit.

Suit will be pursued

Following the court’s dismissal of the suit, Fairholme Capital Management LLC, the investment management firm headed by Bruce Berkowitz, vowed to pursue the rights of private shareholders to profits from Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC).

In a statement to investors Wednesday, he said: “While we strongly disagree with the court’s conclusions, we remain steadfast in our belief that – at a minimum – shareholders are due just compensation for the taking that has occurred.” He added: “We will continue to pursue our legal rights with the same conviction held in our other G-SIFIs [global systemically important financial institutions] – American International Group Inc (NYSE:AIG) and Bank of America Corp (NYSE:BAC) – deemed essential to our way of life.”

Yesterday afternoon, Perry Capital filed a notice of appeal in its case which was recently denied. In a statement to StreetInsider.com on the matter, Perry Capital’s attorney, Theodore B. Olson of Gibson, Dunn, & Crutcher LLP, said: “The district court’s decision overlooks important points of law and improperly resolved key questions of fact based on the government’s cherry-picked record. The merits of this case deserve to be heard in court. Today’s filing brings us closer to that objective.”

Fannie Mae, Freddie Mac Investors Hope For Favorable Verdict