Freddie Mac Investors Lose Class Cert. Bid In Fraud Suit

Law360, New York (March 28, 2012, 7:11 PM EDT) -- A New York federal judge on Tuesday denied Freddie Mac investors' request to proceed as a class in their securities fraud suit against the lender's former executives, saying the market for Freddie Mac stock is not efficient enough to justify class treatment.

Investors say Freddie Mac CEO Richard Syron and Chief Financial Office Anthony Piszel made false and misleading statements about Freddie Mac's capital position and strength in the run-up to a share offering, and had hoped to bring a class action against the two....
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