WASHINGTON (AP) — A federal judge has approved a $153million settlement of a securities fraud
lawsuit against Fannie Mae andKPMG brought by shareholders of the mortgage giant.The approvalThursday by
U.S. District Judge Richard Leon came after nearly a decadeof litigation. The shareholders, led by two Ohio
public-employee pensionfunds, accused Fannie and its former accountant KPMG of causing themlosses by
intentionally manipulating earnings.Fannie had anaccounting scandal in 2004 that forced it to restate
earnings by $6.3billion. In 2006, federal regulators found risky practices andaccounting manipulation at the
company, which was fined $400 million.AFannie official said the settlement is "positive" for
taxpayers and thecompany. Fannie and sibling Freddie Mac were rescued by the governmentin 2008. KPMG said it
was pleased.Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.WASHINGTON (AP) — A federal judge has approved a $153million settlement
of a securities fraud lawsuit against Fannie Mae andKPMG brought by shareholders of the mortgage giant.The
approvalThursday by U.S. District Judge Richard Leon came after nearly a decadeof litigation. The
shareholders, led by two Ohio public-employee pensionfunds, accused Fannie and its former accountant KPMG of
causing themlosses by intentionally manipulating earnings.Fannie had anaccounting scandal in 2004 that
forced it to restate earnings by $6.3billion. In 2006, federal regulators found risky practices
andaccounting manipulation at the company, which was fined $400 million.AFannie official said the settlement
is "positive" for taxpayers and thecompany. Fannie and sibling Freddie Mac were rescued by the
governmentin 2008. KPMG said it was pleased.Copyright 2013 The Associated Press. All rightsreserved. This
material may not be published, broadcast, rewritten orredistributed.