KPMG-Carillion Outcome Shows Hand of Litigation Finance

Feb. 21, 2023, 8:43 PM UTC

KPMG’s settlement with UK administrators in the Carillion PLC case showcases the power of a new tool for targeting auditors in big bankruptcy lawsuits: litigation finance.

Facing a £1.3 billion ($1.6 billion) London lawsuit claiming that it botched its audits of the defunct UK contractor, KPMG LLP agreed Friday to settle with the administrators on undisclosed terms. Unusually for such a high profile lawsuit, the case was funded by Litigation Capital Management Ltd, a Sydney, Australia-based company.

“Previously they had no money to bring these cases,” Patrick Moloney, Litigation Capital’s CEO, said Tuesday in a video call. “Now these ...

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