A lawsuit has been filed and is seeking class action status against the company alleging ERISA fraud. The lawsuit was filed in the United States District Court for the Central District of California against Fremont General Corporation on behalf of participants in two of Fremont's pension plans, the Fremont General Corporation Employee Stock Ownership Plan, and the Fremont General Corporation and Affiliated Companies Investment Incentive Plan.
The lawsuit claims that from January 1, 2005 to the present time (Jun-10-07), Fremont General breached their fiduciary duties with respect to the retirement plans by allowing the investment of employee-participant account balances in Fremont stock and by other related acts. The complaint also alleges employee-participants have suffered millions of dollars in losses to their retirement savings.
