A federal lawsuit has been filed and is seeking class action status against the mortgage lender alleging employees lost millions of dollars on company stock in their retirement plan while executives sold off millions of shares to stave off big losses. Retirees claim corporate officers authorized the purchase of Fremont stock for company pension funds as they dumped their own shares.
The suit was filed in US District Court in Los Angeles under the Employee Retirement Income Security Act and names nine company directors. It claims company Chairman James McIntyre sold $11 million worth of company stock in the summer of 2006, while four other directors sold $5.5 million in stock in 2007.
The case is McCoy v. Fremont, No. 07-02693, U.S. District Court for the Central District of California, Los Angeles.
