Freddie's Transparency Helps It Beat Investor Suit For Good

Law360, Wilmington (September 25, 2012, 9:02 PM EDT) -- A New York federal judge on Monday tossed for good a proposed class action accusing Freddie Mac of misleading investors, finding that the government-backed mortgage buyer's consistent transparency during the housing bust belied the allegations.

In a 34-page opinion, U.S. District Judge John F. Keenan dismissed the suit with prejudice after the plaintiffs, led by a multistate Teamsters pension fund, failed to improve the complaint to show that Freddie Mac and its executives had misrepresented the company’s financial footing and depth of involvement in the subprime...
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