9th Cir. Upholds Dismissal of Fremont Investors’ Suit

The U.S. Court of Appeals for the Ninth Circuit Nov. 29 affirmed dismissal of Fremont General Corp. investors’ third amended class securities fraud complaint stemming from a stock price decline (New York State Teachers’ Retirement Systems v. Fremont General Corp.).

Fremont was a holding company that filed for bankruptcy in 2008. Its lending operations consisted of national subprime residential real estate loans; it operated through a wholly owned California industrial bank subsidiary, Fremont Investment & Loan.

The investors asserted that the individual Fremont defendants’ statements regarding the purported quality of Fremont’s underwriting, loan quality and performance, and financial ...