Fannie Mae, KPMG Settle Accounting Fraud Suit

Law360, New York (May 11, 2010, 3:47 PM EDT) -- Fannie Mae and KPMG LLP have reached a settlement in a lawsuit over the accounting firm's alleged failure to catch Fannie Mae's fraudulent accounting practices, which the government-backed mortgage giant said cost it more than $2 billion.

In a joint motion filed Monday in the U.S. District Court for the District of Columbia, Fannie Mae and KPMG asked for the suit to be dismissed with prejudice, along with KPMG's countersuit against Fannie Mae.

No details of the settlement were provided in the joint motion. But according...
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