KPMG reaches settlement over Fannie Mae lawsuit
US firm and Fannie Mae to share costs to settle with Ohio investors
A $153m (£98.8m) SETTLEMENT has been reached with KPMG in the US and Fannie Mae over a class action lawsuit.
The Ohio attorney general Mike DeWine announced the agreement, following the lawsuit brought by a group of Ohio pension funds and class members. They had alleged in their complaint that Fannie Mae, KPMG and others were involved in issuing false and misleading financial reports in violation of federal securities laws.
“I am pleased to see this litigation finally resolved on behalf of the Ohio pension funds and other members of this very large class,” said DeWine. “The settlement brings closure to this matter and recovery for our Ohio pension funds and class members.”
Comment from KPMG is to follow.
Originally set up by the US government, Fannie Mae was a public company securitising mortgages. The global credit crisis saw Fannie Mae suffer huge losses on its sub-prime loan holdings and was placed under a federal takeover.