Freddie Mac 2014 Annual Report Download - page 53

48 Freddie Mac
It is not possible for us to predict the outcome of these lawsuits (including the outcome of any appeal), or the actions the
U.S. government (including Treasury and FHFA) might take in response to any ruling or finding in any of these lawsuits or any
future lawsuits. However, it is possible that we could be adversely affected by these events, including, for example, by changes
to the Purchase Agreement, or any resulting actual or perceived changes in the level of U.S. government support for our
business.
Litigation Concerning Housing Trust Fund
On July 9, 2013, plaintiffs filed a lawsuit in the U.S. District Court for the Southern District of Florida styled Samuels et
al. vs. FHFA and DeMarco. Freddie Mac is not a party to this lawsuit. In the lawsuit, plaintiffs challenged FHFA’s November
2008 decision to suspend Freddie Mac’s and Fannie Mae’s payments to an affordable housing trust fund managed by HUD. (In
December 2014, FHFA terminated this suspension and directed Freddie Mac and Fannie Mae to begin making contributions to
the fund, commencing with fiscal year 2015.) See “BUSINESS — Regulation and Supervision — Federal Housing Finance
Agency — Affordable Housing Allocations” for more information. In October 2013, FHFA moved to dismiss the complaint and
shortly thereafter plaintiffs filed an amended complaint. Plaintiffs’ amended complaint alleged that FHFA’s actions in ordering
Freddie Mac and Fannie Mae to suspend payments to the trust fund, and FHFA’s failure to review its decision to suspend
payments once Freddie Mac and Fannie Mae’s financial circumstances changed, violated the Administrative Procedure Act.
The plaintiffs asked that the Court, among other items, vacate and set aside FHFA’s decision to indefinitely suspend payments
by Fannie Mae and Freddie Mac to the trust fund, and order FHFA to instruct Freddie Mac and Fannie Mae to proceed as if
FHFA’s suspension of payments to the trust fund had never taken place. Plaintiffs also sought reasonable attorneys’ fees and
costs. On December 6, 2013, FHFA filed a motion to dismiss the plaintiffs’ amended complaint, which plaintiffs opposed. On
September 29, 2014, the Court issued an order granting FHFA’s motion to dismiss the amended complaint. To our knowledge,
none of the plaintiffs filed a timely notice of appeal of the District Court’s decision.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock, par value $0.00 per share, trades on the OTCQB Marketplace, operated by the OTC Markets Group
Inc., under the ticker symbol “FMCC.” As of February 5, 2015, there were 650,043,899 shares of our common stock
outstanding.
The table below sets forth the high and low bid information for our common stock on the OTCQB Marketplace for the
indicated periods and reflects inter-dealer prices, without retail mark-up, mark-down, or commission, and may not necessarily
represent actual transactions.
Table 5 — Quarterly Common Stock Information
High Low
2014 Quarter Ended
December 31 $ 2.50 $ 1.44
September 30 4.58 2.56
June 30 4.78 3.63
March 31 6.00 2.63
2013 Quarter Ended
December 31 $ 3.24 $ 1.26
September 30 1.65 0.98
June 30 5.00 0.67
March 31 1.44 0.27
Holders
As of February 5, 2015, we had 1,818 common stockholders of record.
Dividends and Dividend Restrictions
We did not pay any cash dividends on our common stock during 2014 or 2013. Our payment of dividends is subject to the
following restrictions:
Restrictions Relating to the Conservatorship
The Conservator has prohibited us from paying any dividends on our common stock or on any series of our preferred
stock (other than the senior preferred stock). FHFA has instructed our Board of Directors that it should consult with and obtain
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