NEW YORK, Oct. 9 /PRNewswire/ -- The Securities Law Firm of Klayman & Toskes, P.A., http://www.nasd-law.com/ , announced today that a class action lawsuit, Case No. 08-cv-08181, has been filed against Citigroup Global Markets, Inc. ("Citigroup") and other Defendants on behalf of purchasers of Freddie Mac Preferred Stock, Series Z ("Freddie Preferred Stock Z"). Potential class members who purchased Freddie Preferred Stock Z from Citigroup should consider whether they should participate in the class action or file an individual securities arbitration claim.
In late 2007, due to a decline in value of Freddie Mac's assets and increase in liabilities, Freddie Mac found itself massively undercapitalized. As a result, the company decided to raise $6 billion through the issuance of Preferred Stock, Series Z. To underwrite the Offering, Freddie Mac retained the services of Citigroup and other Defendants. Thereafter, an Offering Circular was distributed in connection with the Initial Offering of the Freddie Mac Preferred Stock Z.
The Complaint alleges that the Offering Circular failed to properly disclose a number of risks associated with Freddie Mac and the Preferred Stock Z. Specifically, the Offering Circular failed to disclose that Freddie Mac (1) had exposure to massive mortgage-related losses; (2) had debilitating deficiencies in its underwriting and risk-management procedures; (3) was and would remain after the Offering considerably undercapitalized; and (4) faced imminent insolvency.
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced significant losses in Freddie Mac Preferred Stock Z, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered investment losses. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you have experienced substantial losses in Freddie Preferred Stock Z with Citigroup and you wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com/ .
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