Freddie Mac Wins Dismissal of Federal Putative Class Action Lawsuit
MCLEAN, Va., April 1, 2011
MCLEAN, Va.April 1, 2011 /PRNewswire/ — Freddie Mac (OTC: FMCC) today announced the dismissal of a putative class action securities lawsuit filed against the company in federal court in August 2008.
Judge John Keenan of the U.S. District Court for the Southern District of New York has granted Freddie Mac’s motion to dismiss all claims asserted against Freddie Mac in a putative securities fraud class action filed against the company and certain of its former senior officers. Judge Keenan found not actionable all alleged misstatements and omissions regarding Freddie Mac’s involvement in the subprime and Alt-A mortgage markets, holding that plaintiffs failed adequately to plead that Freddie Mac’s disclosures on those issues were either false or misleading.
The judge also dismissed alleged misrepresentation claims relating to Freddie Mac’s capital adequacy, core capital, internal controls and underwriting processes. The court granted the plaintiffs 60 days to file an amended complaint, if they choose to do so.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. www.FreddieMac.com
SOURCE Freddie Mac