3rd Ex-Fannie Exec Escapes Investor MDL Over $6.3B Error

Law360, New York (November 21, 2012, 7:06 PM EST) -- A Washington federal judge on Wednesday removed a former Fannie Mae senior vice president and controller from the multidistrict securities litigation over the mortgage giant's $6.3 billion worth of accounting mistakes, saying the plaintiffs failed to show she intentionally misled investors.

U.S. District Judge Richard J. Leon also held that the plaintiffs, including the Ohio Republic Retirees System, failed to produce evidence showing she was even aware of the fraud, which occurred when the company overstated its profits by $6.3 billion between 2001 and 2004. Leanne...
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