PHILADELPHIA, June 17, 2003 (PRIMEZONE) -- A securities class action lawsuit has been commenced in the Southern District of New York on behalf all persons who purchased and/or acquired Freddie Mac (NYSE:FRE) ("Freddie Mac" or the "Company") common stock between April 18, 2000 and June 6, 2003 (the "Class Period"). A copy of the complaint is available from the Court or from Law Offices Bernard M. Gross, P.C. Please visit our website at www.bernardmgross.com or contact us by phone at (866)561-3600(toll-free) or by email at susang@bernardmgross.com.
The case is pending in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, New York. Named as defendants in the complaint are Freddie Mac and the following former executive officers of Freddie Mac: David Glemm, Vaughn Clarke and Leland C. Brendsel. This case has been assigned to the Honorable John E. Sprizzo.
The Complaint charges defendants with violations of sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by issuing false and misleading statements of material fact, including, inter alia, false and misleading quarterly and annual income. The Complaint alleges that during the Class Period, defendants continuously reported that Freddie Mac was experiencing growth in net income and was well-positioned to report increasing growth in quarterly earnings. The Complaint also alleges that defendants also touted Freddie Mac's forthright financial disclosures, stating that they were in the vanguard of full and fair disclosure. In truth and in fact, defendants' alleged statements and reported income were false and misleading because defendants manipulated Freddie Mac's reported income in order to make it appear that the Company was experiencing continued explosive growth in profitability, Freddie Mac lacked adequate internal accounting controls and failed to follow Generally Accepted Accounting Principles in reporting Freddie Mac's quarterly and annual financial results.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Freddie Mac securities during the Class Period. If you purchased or otherwise acquired Freddie Mac securities during the Class Period, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 8, 2003.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Law Offices Bernard M. Gross, P.C. or other counsel of your choice, to serve as your counsel in this action.
The law firm of Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions, and has played lead roles in major cases resulting recovery of hundreds of millions of dollars to investors. Law Offices Bernard M. Gross, P.C. was one of the lead counsel in a previous case against Aetna Inc. which settled for $82.5 million dollars.
If you would like to discuss this action or if you have any questions concerning your rights as a potential class member or lead plaintiff, you may contact:
Law Offices Bernard M. Gross, P.C.
Susan Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, 2nd Floor
Philadelphia, PA 19102
Telephone: 800-849-3120 (toll-free)
866-561-3600 (toll-free)
215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca