Former Fannie CEO Beats Claims In $6.3B Subprime MDL

Law360, New York (September 20, 2012, 9:04 PM EDT) -- A Washington federal judge on Thursday tossed ex-Fannie Mae chief Franklin D. Raines from multidistrict securities litigation over the mortgage giant's $6.3 billion worth of accounting mistakes, saying plaintiffs had no proof he was aware that company financial statements were not compliant with generally accepted accounting principles.

U.S. District Judge Richard J. Leon said that the plaintiffs offered no evidence that Raines knew that the company had overstated its profits by some $6.3 billion between 2001 and 2004.

"There is not only no direct evidence that...
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