Lawfuel – The Law Newswire – NEW ORLEANS, May 8, 2007– Kahn Gauthier …

Lawfuel – The Law Newswire – NEW ORLEANS, May 8, 2007– Kahn Gauthier Swick, LLC (“KGS”) announces that it has commenced an investigation into Fremont General Corporation (“Fremont” or the “Company”) (NYSE:FMT) to
determine whether it has violated federal securities laws by issuing a
series of materially false and misleading statements during the period
March 16, 2006 through February 28, 2007.

Shares of Fremont fell to $8.81 on February 28, 2007, a loss of $3.64,
or 29 percent, from the intraday high of $12.45 achieved the previous
day, after the Company delayed its 4th quarter earnings report. Days
later, on March 2nd, Fremont announced that it was exiting the subprime
residential real estate lending business, which the Company said was
prompted by the receipt of a proposed cease-and-desist order from the
Federal Deposit Insurance Corporation that called for Fremont to
restrict the level of lending in its subprime residential mortgage
business.

Thereafter, just weeks after booking a $140 million pretax loss in the
sale of $4 billion of its subprime residential real estate loan
portfolio, on April 2, 2007, Fremont announced the resignation of its
auditor, Grant Thornton LLP — only eight months after the Company
hired the firm. In support of its resignation, Grant Thornton filed a
letter with the SEC stating it was unable to “evaluate or determine the
completeness, sufficiency or timeliness of the information provided in
response to our requests.”

If you are a Fremont shareholder who purchased shares between the dates
of March 16, 2006 and February 28, 2007, and would like to discuss your
legal rights, you may e-mail or call KGS, without obligation or cost to
you. You may contact Managing Partner Lewis Kahn of KGS direct, toll
free 1-866-467-1400, ext., 100, or by email at
[email protected] KGS focuses its practice on securities fraud
litigation, and the firm’s lawyers have significant experience working
on securities fraud cases that have resulted in significant recoveries
for shareholders. For more information on KGS, please visit
www.kgscounsel.com.

CONTACT: Lewis Kahn
Toll free 1-866-467-1400, Ext. 100
[email protected]

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