Federal Home Loan Mortgage Corporation (NYSE:FRE) ("Freddie Mac" or the "Company") is a government-sponsored provider of mortgage services.

According to a press release dated September 23, 2008, the action names some of the underwriters for the Series Z Preferred stock: Goldman Sachs & Co., J.P. Morgan Chase & Co., and Citigroup Global Markets, Inc. The action is brought on behalf of all purchasers of the Freddie Mac Series Z Preferred who purchased shares in or traceable to the November 29, 2007 initial public offering for this security.

The Complaint alleges that the Defendant underwriters violated Section 12(a)(2) of the Securities Act of 1933. Plaintiff alleges that the Offering Circular and other offering materials for the $6 billion preferred stock offering failed to warn investors about Freddie Mac's fatal exposure to mortgage-related losses, poor underwriting standards and risk management procedures, and the negative impact of those failings on the adequacy of Freddie Mac's capital. Defendants were underwriters of the Series Z Preferred initial public offering. They sold the shares to the public in a firm commitment underwriting at $25 per share less than a year ago. The shares now trade at $2 per share.