Goldman, JPMorgan, Citi Face Freddie Stock Suit

Law360, New York (September 24, 2008, 12:00 AM EDT) -- Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Global Markets Inc. are facing a proposed class action securities lawsuit stemming from an offering of Freddie Mac preferred stock at the end of 2007.

The suit, filed Tuesday in the U.S. District Court for the Southern District of New York on Tuesday, claims that the three banks — along with other underwriters of Freddie Mac's 8.375 percent Fixed to Floating Rate Noncumulative Perpetual Preferred Stock — did not disclose the government-secured entity's exposure to the...
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