KPMG in £125m settlement
KPMG in the US has agreed to pay $200m (£125m) to settle two shareholder lawsuits that alleged it performed a flawed audit.
Other storiesUK investors to sue C&W and KPMG
The firm denied ill performance at both companies, US drugstore chain Rite Aid and US insurer Oxford Health Plans. KPMG said it was settling to avoid years of legal arm twisting with its direct and indirect costs.
KPMG said: ‘Rite Aid’s management conspired to override internal controls and withhold critical information from its auditors. When management of a company, which has the primary responsibility for financial reporting, intentionally manipulates its records, it is extremely difficult for any auditor to uncover such actions,’ according to a report in the FT.
KPMG will pay $125m to settle issues with Rite Aid and $75m to settle all Oxford Health Plans related litigation.