Big Six - KPMG faces #8.5m Law Society writ
The Law Society has issued a writ against KPMG for #8.5m for negligent reporting of a law firm.
The writ relates to a previous claim that KPMG negligently audited law firm Durnford Ford which collapsed in 1992, after the senior partner Graham Ford was found to have mishandled #8.5m of clients’ money. He was given a ten-year jail sentence for fraud.
A Law Society spokeswoman said the action was to cover a compensation fund, taken out to pay the clients of Durnford Ford. KPMG partners Stephen Cawley and Neil Chapman are also mentioned as defendants in the writ.
The Law Society started legal proceedings against KPMG in 1995. A KPMG spokesman said it was part of a long-standing writ that the firm will continue to contest. The claim is expected to go to trial in six months’ time.