Fannie Mae, KPMG Pay $153M To End Accounting Fraud Case

Law360, New York (May 7, 2013, 10:46 PM EDT) -- Mortgage financing giant Fannie Mae and accounting firm KPMG LLP on Tuesday agreed to pay $153 million to resolve a shareholder class action accusing them of accounting fraud and violating securities laws by putting out misleading financial reports.

The settlement will resolve claims by lead plaintiffs the Ohio Public Employees Retirement System and State Teachers Retirement System of Ohio, according to a statement Tuesday by Ohio Attorney General Mike DeWine. The investors had claimed that, as Fannie Mae's former auditor, KPMG hid that Fannie Mae routinely...
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