2nd Circ. Scraps Investor Suit Against Freddie Mac

Law360, New York (November 5, 2013, 4:54 PM EST) -- The Second Circuit on Tuesday refused to revive a class action in which investors claimed they'd been misled about Freddie Mac’s financial condition ahead of the subprime mortgage crisis, saying the investors failed to show their losses had been caused by Freddie’s misstatements.

In a summary order, the appellate court upheld U.S. District Judge John F. Keenan’s September 2012 decision to throw out the proposed class action brought by Central States Southeast and Southwest Areas Pension Fund, a multistate Teamsters pension fund.

The fund alleged that...
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