A potential £250m legal claim against KPMG has been issued by the liquidators of collapsed construction giant, Carillion; full details of this legal claim are expected by the end of the year.
Carillion collapsed in January 2018 with £7 bn in liabilities and 3,000 staff redundancies as consequence. KPMG has been accused by the Official Receiver of negligence in its audit of FTSE 100, leading Carillion’s board to believe the company was profitable and sustainable.
KPMG signed off the company’s accounts four months before it issued a profit warning and nine months before its collapse; the Official Receiver claims this to be misleading; consequently, Peter Meehan, a partner who oversaw KPMG’s audits of Carillion has been suspended, alongside three of his team.
KPMG has claimed that the fault ultimately lies with the company’s board of directors as ‘they set the strategy; they ran the business.’.
The Official Receiver proposes to distribute any proceeds from the legal claim to Carillion’s creditors.
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