Holders of preferred shares to sue Fannie Mae

LOS ANGELES (Reuters) - A California law firm will sue Fannie Mae (FNM.N) on Tuesday on behalf of holders of the mortgage finance company's preferred shares, a lawyer with the firm said late on Monday.

"We will be filing tomorrow ... against Fannie Mae for preferred shareholders who were told just two months ago, 'Buy the preferred shares, you can never go wrong,'" attorney Joseph Cotchett, of Cotchett, Pitre & McCarthy in Burlingame, California, told Reuters.

The lawsuit will be filed in federal court in New York, Cotchett said.

(Reporting by Gina Keating; Editing by Gary Hill)