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Federal Home Loan Mortgage Corporation (Freddie Mac) Summary: The origina class action alleging violations of the federal securities law against the Federal Home Loan Mortgage Corporation (NYSE:FRE) ("Freddie Mac" or the "Company") and certain of its officers and directors on behalf of purchasers of Freddie Mac securities from November 21, 2007 through August 5, 2008 was filed on August 15, 2008.
The Complaint alleges that the Company misled investors as to the soundness of the Company's mortgage portfolio, its underwriting standards and the adequacy of its capital. It took on massive exposure to subprime and other non-traditional risky loans and under-reserved for bad loans and sub-prime investments leading to delayed asset write-downs. Freddie Mac common shares which traded in the $30 range in late 2007 have been decimated by the subsequent revelations of the Company's losses and write-downs, so that Freddie Mac common shares are now trading below $6, wiping out hundreds of millions of dollars in shareholder value. Due to the continuing deteriorating situation, there have been suggestions that a government bail-out might be necessary.
On November 24, 2008, Judge John F. Keenan signed the Opinion and Order #96784 granting the motion to appoint the Central States Southeast and Southwest Areas Pension Fund as lead plaintiff and approved lead plaintiff’s choice of Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. In February 2009, orders were entered allowing for a motion to stay. On May 19, 2009, the lead plaintiff filed an Amended Consolidated Complaint. The defendants have yet to file a response to the complaint.
INDUSTRY CLASSIFICATION:
SIC Code: 6111
Sector: Financial
Industry: Consumer Financial Services
| COMPANY/ISSUER NAME: | Federal Home Loan Mortgage Corporation |
| COMPANY/ISSUER TICKER: | FRE |
| COMPANY WEBSITE: | http://www.freddiemac.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Jino Kuriakose, et al. v. Federal Home Loan Mortgage Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 08/15/2008 | ||
| Opinion And Order | |||
| Type: Order Appointing LP/LC | Date on the document: 11/24/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| Jino Kuriakose, et al. v. Federal Home Loan Mortgage Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 09/22/2009 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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