NEW YORK, June 14, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Federal Loan Mortgage Corporation ("Freddie Mac" or the "Company") (NYSE:FRE) securities between January 27, 2003 and June 9, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Freddie Mac's financial results and business prospects. Specifically, the complaint alleges that Freddie Mac failed to disclose the following facts: (i) that the Company lacked adequate internal controls and personnel expertise; (ii) the Company failed to follow accounting rules that require derivative securities to be marked to market; (iii) the Company "smoothed out its earnings" using accounting techniques to lower results in good times and lift results when business conditions deteriorates; and (iv) the Company provided investigators with doctored records to conceal improper accounting techniques. As a result, the price of the Company's securities were artificially inflated during the Class Period. On June 9, 2003, however, the Company shocked the market when it announced it had fired defendant David Glenn concerning "serious questions about the timeliness and completeness of his cooperation and candor with the board's audit committee counsel". Moreover, on June 11, 2002, various news sources reported that the U.S. Attorney's office for Eastern Virginia and the United States Securities and Exchange Commission ("SEC") were investigating the Company.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Freddie Mac securities between January 27, 2003 and June 9, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Freddie Mac securities during the Class Period, you may, not later than July 29, 2003, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca