BusinessCompany NewsKPMG settles £64m software dispute

KPMG settles £64m software dispute

KPMG's Belgian and US firms have agreed a $115m (£64m) settlement in a lawsuit brought by investors.

If approved, the settlement will be the third largest of its kind by an audit firm involved in a class-action lawsuit.

The lawsuit was brought by investors in Lernout & Hauspie, the bankrupt Belgian producer of speech recognition software.

Lernout & Hauspie was a prominent technology company until filing for bankruptcy in 2000 after a scandal surrounding its revenue recognition policies.

Its founders were charged with forgery and stock price manipulation.

The company was a client of KPMG Bedrijfsrevisoren, which passed on work to KPMG’s US firm.

In a statement, the two KPMG firms said the decision to settle was based on ‘practical business reasons’ and denied all allegations and any liability.

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