Freddie Mac says it has agreed to pay $4.65 million to settle a class action lawsuit accusing the company of violating the Employee Retirement Income Security Act (ERISA).
The company settled the lawsuit without admitting any wrongdoing. The class action lawsuit was filed after the company restated financial results for the years 2000 through 2002.
In addition to paying pay $4.65 million, the company agreed to conduct voluntary seminars to educate employees about investing and the importance of asset diversification and to amend the Thrift/401(k) Savings Plan to appoint an independent fiduciary to oversee the Freddie Mac Stock Fund, one of the investment options under the plan.
The proposed settlement is subject to final approval by a court.
Freddie Mac says the Department of Labor has informed the company that the agency has closed its investigation of Freddie Mac's Thrift/401(k) Savings Plan in anticipation of the proposed settlement.
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing.