Freddie Settles Shareholder Suit

Freddie Mac has agreed to pay $410 million to settle class action lawsuits filed by investors who lost millions of dollars when the company restated earnings tied to its $5 billion accounting scandal.Unveiled after the market closed on April 20, the settlement will reduce the government-sponsored enterprise's first-quarter income by $220 million (after taxes). Individual and institutional investors, including the Ohio Public Employees Retirement System, sued the mortgage giant, charging the company, its top officers, and its directors with securities fraud tied to alleged misstatements about its finances. The investors lost millions when the share price of their Freddie Mac stock plummeted in value. In June 2003 Freddie's then chairman and chief executive, Leland Brendsel, and other top officers were forced out as allegations about accounting improprieties began to mount. Freddie Mac can be found online at http://www.freddiemac.com.