HOUSTON, June 20, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of purchasers of Federal Home Loan Mortgage Corporation (Freddie Mac" or the "Company") (NYSE:FRE) publicly traded securities during the period between January 27, 2003 and June 9, 2003, inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm. Please note that it is anticipated the Class Period may be substantially expanded to begin back as far as at least April 18, 2000.
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. If you purchased Freddie Mac securities between April 18, 2000 and June 9, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than July 29, 2003, for such status. If you are a member of this class, you can join this class action by contacting Emerson Poynter.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll free or e-mail the firm. John G. Emerson, Emerson Poynter LLP, 830 Apollo Lane, Houston, TX 77058. Phone (281) 488-8854.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.