Freddie Mac Announces Lawsuit Dismissal

Posted by Orb Staff on September 28, 2012 No Comments
Categories : Residential Mortgage

12481_freddie-mac Freddie Mac Announces Lawsuit Dismissal Freddie Mac has announced the dismissal of a putative class action lawsuit filed against the company in federal court in August 2008 alleging securities fraud.

According to Freddie Mac, Judge John Keenan of the U.S. District Court for the Southern District of New York granted Freddie Mac's motion to dismiss, with prejudice, all claims asserted against Freddie Mac and certain of its former senior officers. In April 2011, the court had dismissed an earlier version of the plaintiffs' complaint, but at that time the court granted the plaintiffs leave to file an amended complaint, which it has now found to be legally defective.Â

Judge Keenan also denied the plaintiffs' motion to file a Third Amended Complaint. In the court's decision, Judge Keenan rejected claims that Freddie Mac's public disclosures from Nov. 20, 2007, to Sept. 7, 2008, were materially false or misleading.Â

‘We are very pleased with the court's decision and with Judge Keenan's thoughtfully reasoned opinion,’ said William McDavid, executive vice president, general counsel and corporate secretary at Freddie Mac.

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