NEW YORK, Aug. 11 (UPI) -- Two states and a major labor union pension fund filed lawsuits Monday against Freddie Mac, joining a long list of shareholders seeking compensation.
The Wall Street Journal said the federal suits were filed on behalf of pension funds for the states of West Virginia and Ohio, as well as a pension fund for Teamsters union members in the Midwest.
The legal actions all accuse Freddie Mac officials of intentionally misleading investors about the company's earnings to convey an image of smooth, steady growth. Plaintiffs claim those efforts resulted in a major decrease in Freddie Mac's share prices.
Ohio Attorney General Jim Petro said: "Freddie Mac was so intent on maintaining its public image that its officers and board were willing to ignore the rules of proper accounting. This shoddy accounting and lack of corporate ethics is shameful."
The West Virginia and Teamsters suits were filed in federal court in New York; the Ohio suit was filed in Ohio federal court.
