NEW YORK, Aug. 18, 2008 (GLOBE NEWSWIRE) -- Roy Jacobs & Associates announces that it has filed a class action alleging violations of the federal securities law against the Federal Home Loan Mortgage Corporation (NYSE:FRE) ("Freddie Mac" or the "Company") and certain of its officers and directors on behalf of purchasers of Freddie Mac securities from November 21, 2007 through August 5, 2008, (the "Class"). The action is pending in the United States District Court for the Southern District of New York. In addition, the firm continues its investigation of claims with respect to the Company's public offering of $6 billion of preferred shares on or about November 29, 2007 (the "Offering").
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also visit the firm's website at www.jacobsclasslaw.com.
The Complaint alleges that the Company misled investors as to the soundness of the Company'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 the Company's losses and write-downs, so that Freddie Mac common shares are now trading below $6, wiping out hundreds of millions of dollars in shareholder value. Due to the continuing deteriorating situation, there have been suggestions that a government bail-out might be necessary.
We continue to investigate potential wrongdoing concerning the Offering. On or about November 29, 2007, the Company sold $6 billion in Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Shares (the "Preferred Shares") which trade under the symbol FRE-PZ. The Preferred Shares, which were offered at $25 per share, have lost over 40% of their value.
If you purchased Freddie Mac common shares (FRE): (i) during the period from November 21, 2007 through August 5, 2008; or (ii) or the Preferred Shares (FRE-PZ) in the Offering or during the period from November 29, 2007 through August 5, 2008, and still hold your shares at a loss, or, if you have sold them at a loss, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation. You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by October 17, 2008.
You may also sign up at our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.globenewswire.com/ca/