Ok, it's not quite man bites dog, but today Fannie Mae (NYSE: FNM) announced that it has filed suit against KPMG LLP, the company's former outside auditor, for negligence and breach of contract in the Superior Court of the District of Columbia.The 17-count complaint seeks:
[c]ompensatory damages to be determined at trial in an amount not less than $2,000,000,000 (Two Billion Dollars)A copy of the complaint is available from Fannie Mae, here.
Articles on the litigation can be found here (The Wall Street Journal - sub. req'd), here (MarketWatch.com), and here (Reuters).
The Journal article quotes a KPMG spokesman, who indicated that the accounting firm "is likely to file a countersuit," and that KPMG "will remove this suit to [the United States District Court for the District of Columbia], where we intend to pursue our own claims."
Disclosure: The author and his law firm are counsel for certain plaintiffs in the currently pending Fannie Mae derivative litigation.
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