Izard Nobel LLP Announces Class Action Lawsuit Against Federal Agricultural Mortgage Corp.
HARTFORD, CT -- (Marketwire) -- 12/11/08 -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Columbia on behalf of those who purchased the publicly traded securities of Federal Agricultural Mortgage Corp. (NYSE: AGM) ("Farmer Mac" or the "Company") between March 15, 2007 and September 12, 2008, inclusive (the "Class Period").
The Complaint charges that Farmer Mac and certain of its officers and directors violated federal securities laws by misrepresenting the Company's financial and operational results. Specifically, defendants failed to disclose that: (i) Farmer Mac's results had been inflated through manipulations relating to the characterization of impairment costs and/or depreciation expenses which inflated the Company's reported cash flows, gross margins and core and GAAP-earnings; (ii) the Company's financial results were inflated by defendants' use of overly optimistic assumptions of asset valuations and investments, which were also reflected in defendants' misuse of mark-to-market accounting; (iii) the Company's exposure to investment losses and credit problems of trading partners such as Lehman Brothers and Fannie Mae was much greater than represented; and (iv) the Company was not on track to meet or exceed guidance sponsored or endorsed by defendants.
