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by CareyBot

Secondary mortgage giant Freddie Mac has agreed to pay $410 million to settle securities class-action and shareholder derivative lawsuits stemming from accounting mistakes that led the company to restate three years of earnings. The settlement is expected to reduce first-quarter 2005 net income by approximately $220 million after tax, including the application of expected insurance proceeds, the company said in a statement Thursday. This impact is in addition to other matters affecting 2005 net income, including approximately $200 million of adjustments and corrections previously discussed in a company announcement. "Today's settlement, like the settlement announced earlier this week with the Federal Election Commission, enables this management team to resolve past issues so that we can ...