Investor Alert: KGS Announces the Initial Filing of Securities Fraud Class Action Lawsuit Against Federal Agriculture Mortgage Corp. ("Farmer Mac") -- AGM

• Press Release
• Source: Kahn Gauthier Swick, LLC
• On 8:02 pm EST, Friday December 5, 2008

NEW ORLEANS, Dec. 5, 2008 (GLOBE NEWSWIRE) -- Kahn Gauthier Swick, LLC (``KGS'') has filed a class action lawsuit against Federal Agriculture Mortgage Corp. (``Farmer Mac'' or the ``Company'') (NYSE:AGM - News) (NYSE:AGM-A) in the United States District Court for the District of Columbia, on behalf of purchasers of the securities of the Company between March 15, 2007 and September 12, 2008, inclusive (the ``Class Period''). No class has yet been certified in this action.

Related Quotes

Symbol	Price	Change
AGM	6.59	0.00

{"s" : "agm","k" : "c10,l10,p20,t10","o" : "","j" : ""}

If you would like to discuss your legal rights, along with the lead plaintiff position and its related responsibilities including overseeing lead counsel with a goal of obtaining a fair settlement, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@kgscounsel.com.

Farmer Mac and certain of the Company's officers and/or directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the ``Exchange Act''). Farmer Mac was chartered by Congress for the purpose of establishing a market for agricultural real estate and rural housing mortgage loans and rural utilities loans, as well as to facilitate capital market funding for USDA-guaranteed farm program and rural development loans.

The complaint alleges that during the Class Period, Farmer Mac represented that the company was reporting ``strong'' or ``record'' financial and operational results, and that Farmer Mac had already taken adequate measures to ensure that the Company would not face catastrophic losses related to un-hedged or risky investments -- including a recent three year accounting restatement that was supposed to bring the Company into compliance with recent improvements in accounting for hedging and investment transactions and losses.

However, unknown to investors, at the time of the Company's representations, defendants were in possession of material undisclosed information that contradicted their public statements, including that: (a) defendants were inflating Farmer Mac's results through manipulations relating to the characterization of impairment costs and/or depreciation expenses which inflated the Company's reported cash flows, gross margins and Core and GAAP-earnings; (b) the Company's financial results were inflated by defendants' use of overly optimistic assumptions of asset valuations and investments, which were also reflected in defendants' misuse of mark-to-market accounting; (c) the Company's exposure to investment losses and credit problems of trading partners such as Lehman Bros. and Fannie Mae was much greater than represented; and (d) the Company was not on track to meet or exceed guidance sponsored or endorsed by defendants.

Investors only first learned the truth about Farmer Mac on September 12, 2008, when its shares closed at $16.56, from an open of $23.78, losing over 30% of their value in one day after the Company filed documents with the SEC saying it would incur significant charges due to its exposure to Fannie Mae securities. Further, shares of the Company continued to trade down thereafter to close to $2.00 per share following announcements concerning the resignation of its Chairman of the Board and losses related to debt issued by Lehman Brothers.

If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than February 3, 2009. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@kgscounsel.com. To learn more about KGS, you may visit http://www.kgscounsel.com. KGS is a law firm focused on securities class action litigation with offices in New Orleans and New York City.

KGS' lawyers have significant experience litigating complex securities class actions. Among other cases, KGS has been appointed Lead or Co-Lead Counsel in the following securities cases: In re: U.S. Auto Parts Networks, Inc. Securities Litigation, C.D. Cal.; In re Optionable, Inc. Securities Litigation, S.D.N.Y.; In re Xethanol Corporation Securities Litigation, S.D.N.Y.; Pixelplus Co. Ltd., S.D.N.Y.; In re Witness Systems Inc. Securities Litigation, N.D. Ga.; Whitney Information Network, M.D. Fla.; In re Superior Offshore International, Inc. Securities Litigation, S.D. Tex.; In re Xinhua Finance Media, Ltd. Securities Litigation, S.D.N.Y.; Terayon Comm. Systems Inc., N.D. Cal.; and In re BigBand Networks, Inc. Securities Litigation, N.D. Cal.

SPECIAL NOTICE: KGS encourages you to carefully evaluate any firm you may consider to represent your interests in the Farmer Mac class action. The Private Securities Litigation Reform Act (``PSLRA'') permits Farmer Mac shareholders to choose counsel of their choice to prosecute this action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the Farmer Mac action in particular, AND especially the quality of the firm's work. Interested shareholders are encouraged to call for consultation and to request more information about KGS.

          Kahn Gauthier Swick, LLC
          Lewis Kahn
          1-866-467-1400, ext. 100
          Lewis.kahn@kgscounsel.com
          650 Poydras St., Suite 2150
          New Orleans, LA 70130