|  | | 2006 News and Press Releases | | |
HEADLINE NEWS:
KPMG Plans Counter Suit of Fannie Mae
Staff Writer
AccountingWEB.com. December 14, 2006
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EXCERPT: KPMG fired back at former audit client Fannie Mae this week, saying it would counter the mortgage giant’s $2 billion negligence and breach of contract lawsuit.
KPMG “will pursue our own claims against Fannie Mae” in the U.S. District Court in Washington, D.C., spokesman Tom Fitzgerald told reporters Tuesday. Fannie Mae filed its lawsuit Tuesday in the Superior Court of the District of Columbia. Fitzgerald said the issues raised in Fannie Mae's lawsuit “are already pending" in shareholder lawsuits before the federal district court. He did not elaborate on what claims KPMG would make against Fannie Mae, Reuters reported. The nation’s largest mortgage lending company filed the lawsuit Tuesday in relation to the flawed accounting that led to a $6.3 billion restatement of earnings. The complaint alleges that as auditor KPMG applied more than 30 flawed principles and cost Fannie Mae more than $2 billion in damages, Bloomberg reported. Fannie Mae fired KPMG two years ago, just a week after the Securities and Exchange Commission (SEC) ordered Fannie Mae to restate more than two years of flawed earnings. |
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