PracticeAccounting FirmsKPMG to appeal $41m negligence verdict

KPMG to appeal $41m negligence verdict

KPMG is appealing a negligence verdict carrying more than $41m in damages

KPMG is appealing a professional malpractice and negligence verdict after a
New
Jersey jury awarded Cast Art more than $41m in damages.

Cast Art sued KPMG in 2003 for for failing to detect financial fraud at
Cranbury,
NJ-based Papel Giftware which Cast Art acquired in December 2000, claiming KPMG
knew of the fraud but purposely overlooked it in order to assist the chairman of
Papel’s board, who provided significant business to KPMG. WebCPA
reports.

KPMG argued in its defense it had indicated during the three years it was the

auditor of the company there were problems, but Cast Art decided to buy Papel

anyway.

‘We do not believe that there is a factual basis for this verdict, and are
confident
it will be reversed on appeal,’ Dan Ginsburg, KPMG spokesman, said.

Further reading:

Read
the WebCPA story

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