KPMG Settles £1.3 Billion Suit With Carillion Liquidator (2)

KPMG LLP reached an agreement with the administrators of defunct UK contractor Carillion Plc to settle a £1.3 billion ($1.6 billion) London lawsuit that accused the audit firm of negligent and misleading audits.

Carillion was an “extreme and serious corporate failure, and it is important that we all learn the lessons from its collapse,” Jon Holt, chief executive of KPMG, said in a statement Friday. The terms of the settlement are confidential.

The UK’s Official Receiver, acting on behalf of Carillion’s creditors, had accused KPMG of failing to spot misstatements on the group’s accounts and providing misleading financial statements. ...