Federal Agricultural Mortgage Corporation (Farmer Mac) (NYSE: AGM) Investor Securities Class Action Lawsuit 12/05/2008

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Company Name(s): 
Federal Agricultural Mortgage Corp.
Case Name: 
Federal Agricultural Mortgage Corp. Shareholder Class Action Lawsuit 12/05/2008
Case Status: 
Case Dismissed
Affected Securities
NYSE: AGM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/05/2008
Class Period Begin: 
03/15/2007
Class Period End: 
09/12/2008
Court of Filing: 
U.S. District Court for the District of Columbia
Deadline To File for Lead: 
02/03/2009
Case Dismissed: 
02/26/2009
Summary: 

February 26, 2009 - The court ordered the case dismissed.

February 25, 2009 - Parties filed a stipulation of dismissal order.

February 23, 2009 - Lead plaintiffs and lead counsel were appointed.

February 3, 2009 - Lead plaintiff motions were filed.

December 5, 2008 - An investor in shares of Federal Agricultural Mortgage Corporation (NYSE: AGM) filed a lawsuit in the U.S. District Court for the District of Columbia against Federal Agricultural Mortgage Corporation over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges Federal Agricultural Mortgage Corporation (Farmer Mac) and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between March 15, 2007 and September 12, 2008 defendants issued materially false and misleading statements regarding Federal Agricultural Mortgage Corporation's business and financial results.

The complaint alleges that Federal Agricultural Mortgage Corporation was reporting “strong” or “record” financial and operational results, and that Federal Agricultural Mortgage Corporation had already taken adequate measures to ensure that the it would not face catastrophic losses related to un-hedged or risky investments — including a recent three year accounting restatement that was supposed to bring Federal Agricultural Mortgage Corporation into compliance with recent improvements in accounting for hedging and investment transactions and losses, but unknown to investors, at the time of the Federal Agricultural Mortgage Corporation’s representations, defendants were in possession of material undisclosed information that contradicted their public statements. Investors learned about the truth about Federal Agricultural Mortgage Corporation (NYSE: AGM) on September 12, 2008, when its shares closed at $16.56, from an open of $23.78, losing over 30% of their value in one day after the Federal Agricultural Mortgage Corporation filed documents with the SEC saying it would incur significant charges due to its exposure to Fannie Mae securities and then Federal Agricultural Mortgage Corporation shares continued to trade down thereafter to close to $2.00 per share following announcements concerning the resignation of its Chairman of the Board and losses related to debt issued by Lehman Brothers.