Freddie Mac Beats Ohio’s Investor Suit Over Mortgage Crisis (2)

The Federal Home Loan Mortgage Corp. defeated a long-running lawsuit alleging that the lender, known as Freddie Mac, misrepresented its exposure to risky, nontraditional mortgage loans before the housing crash that spurred the Great Recession.

The Ohio Public Employees Retirement System, which previously was denied shareholder class certification, failed to establish a dispute of key facts over whether Freddie Mac made false statements about its subprime and other semi-risky loan exposure before its stock price plummeted in November 2007, Judge Benita Y. Pearson said.

The US District Court for the Northern District of Ohio’s judgment in favor of Freddie ...