BOCA RATON, Fla., Sept. 23, 2008 (GLOBE NEWSWIRE) -- The law firm of Vianale & Vianale LLP announces that it filed a class action lawsuit on September 23, 2008 on behalf of all persons who purchased Freddie Mac 8.375% Non-Cumulative Perpetual Preferred Stock, Series Z (the "Series Z Preferred") (NYSE:FRE-PZ).
The action names some of the underwriters for the Series Z Preferred stock: Goldman Sachs & Co., J.P. Morgan Chase & Co., and Citigroup Global Markets, Inc. The action is brought on behalf of all purchasers of the Freddie Mac Series Z Preferred who purchased shares in or traceable to the November 29, 2007 initial public offering for this security. A copy of the complaint can be obtained by calling the offices of Vianale & Vianale or from the website at: www.vianalelaw.com. The action (Case No. 08-CV-8181) was filed in U.S. District Court for the Southern District of New York.
The complaint alleges that the defendant underwriters violated Section 12(a)(2) of the Securities Act of 1933. Plaintiff alleges that the Offering Circular and other offering materials for the $6 billion preferred stock offering, failed to warn investors about Freddie Mac's fatal exposure to mortgage-related losses, poor underwriting standards and risk management procedures, and the negative impact of those failings on the adequacy of Freddie Mac's capital. Defendants were underwriters of the Series Z Preferred initial public offering. They sold the shares to the public in a firm commitment underwriting at $25 per share less than a year ago. The shares now trade at $2 per share.
If you bought shares of the Series Z Preferred (FRE-PZ) in the offering or from November 29, 2007 or thereafter, you may, no later than October 17, 2008, ask the court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The court must determine whether the class member's claim is typical of other members' claims, and whether the class member will adequately represent the class. Your ability to recover is not, however, affected by the decision whether or not to serve as a lead plaintiff. Vianale & Vianale LLP is active in major litigations pending in federal and state courts. More about the firm is available on its website.
If you wish to discuss this action with us, or have any questions concerning our lawsuit, this notice or your rights and interests with regard to this case, please contact:
Kenneth J. Vianale, Esq.
Julie Prag Vianale. Esq.
Vianale & Vianale LLP
2499 Glades Road, Suite 112
Boca Raton, FL 33431
888- 657-9960 (Toll Free)
(561-392-4750)
E-mail: kvianale@vianalelaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca.