Freddie Mac to settle pension litigation

MCLEAN, Va., Aug. 21 (UPI) -- Federally chartered mortgage lender Freddie Mac agreed to pay $4.65 million to settle class action litigation over its pension.

The proposed settlement seeks to resolve the Employee Retirement Income Security Act class action litigation that was filed following the company's restatement of financial results for the years 2000 through 2002.

Freddie Mac said Monday it is not admitting any wrongdoing.

"Today's proposed settlement further demonstrates our commitment to resolving past issues so that we can maintain our focus on achieving our mission, serving our customers and running our business well," said Richard F. Syron, Freddie Mac's chairman and chief executive officer.

The payment, which will be fully covered by insurance, is subject to the negotiation and execution of final documentation and preliminary and final approval by the court.