This is a securities class action lawsuit against the Federal Home Loan Mortgage Corp, otherwise known as "Freddie Mac".
This class action lawsuit alleges that Freddie Mac misled investors as to the soundness of Freddie Mac'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 Freddie Mac's losses and write-downs, so that Freddie Mac common shares are now trading below $1, wiping out hundreds of millions of dollars in shareholder value.
Name (Stock Symbol)
Federal Home Loan Mortgage Corporation (Freddie Mac) (FRE)
Freddie Mac engages in mortgage purchasing, credit guarantee, and portfolio investment activities in the United States.
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