Ohio AG Slams Freddie In Suit Alleging It Hid Billion$ In Sub-Prime Mortgage Lending Losses

From the Ohio Attorney General's office:

• Alleging that the Federal Home Loan Mortgage Corporation, more commonly known as Freddie Mac, "secretly and intentionally participated in one of the largest housing investment deceptions in modern U.S. economic times," Ohio Attorney General Marc Dann last Friday filed a securities fraud class action lawsuit in federal court in Youngstown, Ohio. The action was filed on behalf of the Ohio Public Employees Retirement System (OPERS) to benefit the fund and all other shareholders similarly harmed by the company’s investment in securities backed by sub-prime mortgage loans. OPERS losses as a result of the alleged fraud could be as high as $27.2 million.

• This lawsuit is evidence of the Attorney General’s commitment on behalf of Ohio’s pension funds to recover billions of dollars lost as a result of the collapse of the sub-prime mortgage industry. OPERS was the Lead Plaintiff in an earlier case against Freddie Mac and won a $410 million settlement in that case.

For more, see the Ohio AG News Release - Attorney General Marc Dann Sues Freddie Mac on Behalf of Ohio Public Employees Retirement Fund.