Employees Sue Lender Over Retirement Plan Losses

Law360, New York (April 26, 2007, 12:00 AM EDT) -- Employees of embattled subprime mortgage lender Fremont General Corp. have sued the company, alleging that its directors breached their fiduciary duty by not acting to prevent the loss of millions of dollars from its retirement and stock ownership plans.

Santa Monica, Calif.-based Fremont was one of the many subprime lenders that were forced out of the subprime business last month by U.S. regulators, which said the company had not adequately ensured that borrowers would be able to repay loans.

The company has been trying to rebrand...
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