Ex-Fannie Mae CFO Out Of MDL Over $6.3B Accounting Error

Law360, New York (October 16, 2012, 11:05 PM EDT) -- A Washington federal judge on Tuesday dismissed ex-Fannie Mae Chief Financial Officer J. Timothy Howard from multidistrict securities litigation over the mortgage giant's $6.3 billion worth of accounting mistakes, ruling the plaintiffs had failed to show he intended to deceive investors.

U.S. District Judge Richard J. Leon granted summary judgment to Howard and said that the plaintiffs had failed to show that Howard meant to deceive investors when the company overstated its profits by $6.3 billion between 2001 and 2004.

“There is no direct evidence that...
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