Opers v. Fhlmc

Summary

The court held that the district court improperly rejected OPERS’s price-maintenance theory, which supports market efficiency, reliance, and loss-causation theories in this securities-fraud action. It reversed the finding that Freddie Mac’s stock did not trade in an efficient market, vacated the rulings denying class certification and excluding OPERS’s expert, and held that genuine disputes remained regarding falsity and scienter as to subprime and Alt-A exposure. It otherwise upheld the conclusion that the challenged credit-risk and underwriting statements were not actionable and remanded for further proceedings on class certification, loss causation, damages, and control-person liability.