Fannie Mae Hauls KPMG To Court Over Restatement

Law360, New York (December 12, 2006, 12:00 AM EST) -- On the heels of a multibillion-dollar financial restatement, embattled mortgage giant Fannie Mae has pointed the finger of blame at KPMG LLP, slapping its former auditor with a $2 billion lawsuit on Tuesday that alleges negligence and breach of contract related to the company's colossal accounting scandal.

Earlier this month, Fannie Mae revised its earnings statements from 2001 to 2004, revealing that profits were $6.3 billion less than reported.

The government-sponsored lender said in its lawsuit, filed this week in the Superior Court of the District...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.