DC Judge Approves $153M Fannie, KPMG Class-Action Settlement
December 20, 2013
A nearly decade-long class-action fraud lawsuit on behalf of Fannie Mae investors and the GSEs accountant KPMG LLP has been put to rest following the approval of a federal court judge earlier this month. In papers filed with the U.S. District Court of the District of Columbia, Judge Richard Leon said he found the $153 million settlement and plan for distributing it among the more than one million class members was fair, reasonable and adequate. Two Ohio pension funds the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio filed suit in 2004 related to a $6.3 billion overstatement of earnings against Fannie and three former GSE executives, including then-CEO Franklin Raines.