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WASHINGTON (AP) - Shareholders who lost money following Fannie Mae's accounting scandal may not include investment house Goldman, Sachs & Co in a securities fraud lawsuit against the mortgage giant, a federal judge said Tuesday.
U.S. District Judge Richard J. Leon dismissed all allegations against Goldman Sachs. Shareholders of Fannie Mae had accused Goldman Sachs of arranging deals that allowed Fannie Mae to shift more than $107 million in earnings into future years without properly informing investors.
Fannie Mae buys mortgage loans from lenders, packages the loans and sells them as mortgage-backed bonds. Regulators accused the agency in 2004 of serious accounting problems and ordered it to restate earnings back to 2001.
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