NEW YORK, Dec. 12, 2008 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the District of Columbia on behalf of purchasers of Federal Agriculture Mortgage Corp. ("Farmer Mac" or "the Company") (NYSE:AGM) securities during the period between March 15, 2007 and September 12, 2008 (the "Class Period") for violations of federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Farmer Mac securities during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by February 3, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint charges that Farmer Mac and certain of its officers and directors violated federal securities laws by misrepresenting the Company's financial and operational results. Specifically, defendants failed to disclose that: (i) Farmer Mac's results had been inflated through manipulations relating to the characterization of impairment costs and/or depreciation expenses which inflated the Company's reported cash flows, gross margins and core and GAAP-earnings; (ii) the Company's financial results were inflated by defendants' use of overly optimistic assumptions of asset valuations and investments, which were also reflected in defendants' misuse of mark-to-market accounting; (iii) the Company's exposure to investment losses and credit problems of trading partners such as Lehman Brothers and Fannie Mae was much greater than represented; and (iv) the Company was not on track to meet or exceed guidance sponsored or endorsed by defendants.