| Company: | Fremont General Corporation |
| Ticker Symbol: | NYSE: FMT |
| Class Period:: | May 9, 2006, to February 27, 2007 |
| Date Filed: | Sep-12-07 |
| Lead Plaintiff Deadline: | Nov-13-07 |
| Court: | Central District, CA |
| Allegations: |
A class action lawsuit has been filed against Fremont General Corporation ("Fremont" or the "Company") (NYSE: FMT) in the United States District Court for the Central District of California, on behalf of shareholders who purchased the common stock of the Company between May 9, 2006, and February 27, 2007, inclusive (the "Class Period"). No class has yet been certified in this action.
Fremont and certain of its officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint charges that throughout the Class Period, Fremont presented itself as a company that was well-equipped to manage a large, multi-billion-dollar portfolio of sub-prime real estate loans. Fremont repeatedly stated that the Company maintained systems and procedures to monitor the quality and performance of these loans -- including the maintenance of loan loss reserves sufficient to cover foreseeable losses expected in its loan portfolio, relative to market conditions.
At the end of the Class Period, the truth began to emerge that, in fact, Fremont had engaged in unsafe and unsound business practices that negatively impacted its business. On February 27, 2007, and in the following days, shortly after certain officers and directors liquidated millions of dollars of their personally held shares, the Company disclosed: (1) Fremont could not issue its financial statements for the last quarter and full year of 2006; (2) The Federal Deposit Insurance Corporation had determined that the Company had engaged in unsafe and unsound banking practices and had committed violations of law or regulations; (3) Fremont would be forced to abandon the sub-prime lending market; and (4) Fremont's auditors had refused to issue an auditor's report on the Company's 2006 financial statements.
Following these disclosures, Fremont's stock price sharply declined over the course of several trading days -- reaching a new 52 week low and losing over 50% in market value in a very short period of time.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Fremont and certain of its officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint charges that throughout the Class Period, Fremont presented itself as a company that was well-equipped to manage a large, multi-billion-dollar portfolio of sub-prime real estate loans. Fremont repeatedly stated that the Company maintained systems and procedures to monitor the quality and performance of these loans -- including the maintenance of loan loss reserves sufficient to cover foreseeable losses expected in its loan portfolio, relative to market conditions.
At the end of the Class Period, the truth began to emerge that, in fact, Fremont had engaged in unsafe and unsound business practices that negatively impacted its business. On February 27, 2007, and in the following days, shortly after certain officers and directors liquidated millions of dollars of their personally held shares, the Company disclosed: (1) Fremont could not issue its financial statements for the last quarter and full year of 2006; (2) The Federal Deposit Insurance Corporation had determined that the Company had engaged in unsafe and unsound banking practices and had committed violations of law or regulations; (3) Fremont would be forced to abandon the sub-prime lending market; and (4) Fremont's auditors had refused to issue an auditor's report on the Company's 2006 financial statements.
Following these disclosures, Fremont's stock price sharply declined over the course of several trading days -- reaching a new 52 week low and losing over 50% in market value in a very short period of time.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
