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Case ID: 2944 | Employment | 11/25/2003
A class action has been filed against Federal Home Loan Mortgage Corporation (Freddie Mac) on behalf of participants in the Federal Home Loan Mortgage Corporation Thrift/401(k) Savings Plan who allege that the corporation and the trustees of the savings plan violated the federal Employee Retirement Income Security Act (ERISA) when they failed to diversify plan holdings and allowed the plan to invest too heavily in Freddie Mac stock between January 1, 2000, and the present. The action seeks unspecified compensatory damages.
On June 9, 2003, Freddie Mac announced that certain officers had resigned or been fired over allegations relating to accounting improprieties during the period that the action covers. On this news, Freddie Mac common stock value fell by 16%, on trading volume nearly 15 times its normal level. On July 23, another report was released, in which the company related that top company executives had routinely under-reported profits in order to control investors' earnings expectations. This created a cash reserve so that the company could easily cover future losses. Freddie Mac has now admitted that it failed to report between $1.5 and $4.5 billion of earnings since January 2000. The action alleges that plan participants are allowed to invest up to 15% of their paychecks in the savings plan. Freddie Mac matches 100% of employee contributions up to 6% of a participant's salary. Because company executives, acting on the company's behalf, were responsible for both the under-reporting of the company's earnings and the administration of the savings plan, the action alleges that they breached their fiduciary duties to the plan by forcing it to invest in company stock while they were aware of the reporting issues. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest A class action lawsuit has been filed in the Northern District Court of Illinois against Fritz Landscape Company. The case involves violations of the Fair Labor Standards Act. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. A collective action has been filed in Indiana against U.S. Security Associates, Inc. The action is brought on behalf of all Indiana residents who worked as security guards for U.S. Security and who were denied proper overtime compensation. The action is brought under the federal Fair Labor Standards Act as well as Indiana state labor and contract law and seeks back pay, statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, all claimants that wish to join the action must voluntarily "opt-in" to the action. The guards have asked the court to notify all potential claimants. Hundreds of Career Education Corporation temporary workers can join a class action-type lawsuit against the company that seeks to reclaim unpaid overtime wages, though the company disputes all of the claims made by the plaintiffs and says the overtime hours in question are exaggerated. Henry Ford Hospital agreed to settle two class action lawsuits filed by seven employees who alleged employment discrimination against African-Americans dating from 1998.
Henry Ford Hospital agreed to pay about $1.1 million to class representatives and “eligible members of the class.” Members of the class include hospital employees employed between July 10, 1998, and Dec. 31, 2002, and who are not named plaintiffs. They will receive $350 each. An additional $1 million will fund a series of career-development, mentoring and diversity-training programs at the hospital. A class action lawsuit has been filed in the Southern District of Florida against Goar Corporation. The case involves violations of the Fair Labor Standards Act. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. Some states have labor laws that grant more protections to its citizens than federal law does. A class action has been filed against telemarketing giant ICT Group on behalf of all current and former hourly employees of the company's calling centers in West Virginia alleging that the company had violated the West Virginia Wage Payment and Collection Act with respect to certain of the company's pay practices.
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