Freddie Mac 2015 Annual Report Download - page 327

Financial Statements Notes to the Consolidated Financial Statements | Note 15
Freddie Mac 2015 Form 10-K 325
Mae to Treasury under the net worth sweep dividend), compensatory damages, attorneys’ fees, costs and
expenses.
At present, it is not possible for us to predict the probable outcome of the lawsuits discussed above in the
U.S. District Courts for the District of Columbia and the District of Delaware and the U.S. Court of Federal
Claims (including the outcome of any appeal) or any potential effect on our business, financial condition,
liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or
range of possible loss in the event of an adverse judgment in the foregoing matters due to a number of
factors, including the inherent uncertainty of pre-trial litigation. In addition, with respect to the In re Fannie
Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations case, the plaintiffs
have not demanded a stated amount of damages they believe are due, and the Court has not certified a
class.
Stockholder Letters
We have received two letters dated January 19, 2016 addressed to the Board of Directors. Each letter is
purportedly on behalf of the same holder of stock of Freddie Mac. The first letter urges the members of
the Board to take various steps under Virginia law including, among others, causing Freddie Mac to
immediately stop paying dividends to Treasury on account of the senior preferred stock. The second letter
is a demand to inspect various books and records of Freddie Mac, including Board materials and
accounting records. On January 28, 2016, FHFA (as Conservator) informed the purported stockholder’s
representative that the state law principles asserted in the first letter are not applicable to the Board and
that the stockholder has no basis upon which to demand inspection of Freddie Mac’s records.