The Complaint Alleges as follows: Throughout the Class Period, defendants, issued to the public a materially false and/or misleading earnings press releases, financial statements and reports and other statements that artificially inflated the price of Freddie Mac’s common stock, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder. Even when specifically asked, Freddie Mac failed for years to disclose the extent and amount of its subprime lending and guarantee exposure. Freddie Mac had the opportunity to make these problems known, but hid behind the fact that it is not required to file periodic financial reports with the SEC. Its larger rival Fannie Mae, on the other hand, voluntarily files its financial reports with the SEC.