Freddie Mac Asks 2nd Circ. To Nix Investor Case

Law360, New York (August 26, 2013, 8:50 PM EDT) -- Freddie Mac asked the Second Circuit Monday to affirm the dismissal of a class action in which investors claimed they were misled about its financial condition ahead of the subprime mortgage crisis, arguing that it was forthright in its disclosures.

Shareholders who now complain that Freddie Mac did not disclose its true financial situation have alleged “fraud by hindsight,” a lawyer for the government-sponsored enterprise told a panel of judges at oral arguments.

“Freddie Mac made extensive disclosures,” Jordan D. Hershman of Bingham McCutchen LLP said....
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