''Fannie Mae repeatedly, systematically and intentionally misled KPMG,'' the audit firm alleges in a countersuit.
KPMG has countersued its former client Fannie Mae for "fraudulent deception" stemming from the mortgage giant's $6.3 billion accounting scandal, according to published reports.
In a filing with the U.S. District Court for the District of Columbia, the Big Four firm asserted that from 1998 until 2004, Fannie withheld and distorted its accounting, engaging in "breach of contract, fraudulent misrepresentation, fraudulent inducement" and other wrongdoing, reported Bloomberg.
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Perhaps the best-publicized recent incident of an auditor pursuing legal claims against a client was Ernst & Young's lawsuit against HealthSouth, filed during the trial of Richard Scrushy. E&Y, which served as HealthSouth's auditor from 1996 through 2002, claimed that the scandal exposed the firm to lawsuits and damaged its reputation. HealthSouth countersued the following month.
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