Big Four

Carillion liquidators advance £250m KPMG lawsuit

Representatives of the Official Receiver sent a pre-claim letter earlier this month in a bid to advance the case

The liquidators of construction firm Carillion have reportedly sent a pre-claim letter to KPMG, pushing forward the £250m claim against the auditor.

According to Sky News, representatives of the Official Receiver sent the letter earlier this month in a bid to advance the case of Carillion, which collapsed in early 2018 owing almost £7bn.

The pre-action letter signals a further step closer in the official process required to be taken before the claim can be taken to court.

The Official Receiver is working alongside KPMG’s fellow Big Four firm PwC, who is acting as special manager.

Moreover, Carillion’s liquidators last month struck a deal with Litigation Capital Management (LCM) to fund the lawsuit.

At the time, LCM said that the claim had risen from KPMG’s conduct of its audits of the construction company’s financial statements, which supposedly led to in excess of £250m in losses for the group.

Carllion’s collapse three years ago resulted in the loss of thousands of jobs, with KPMG’s role also being separately investigated by the Financial Reporting Council (FRC).

While KPMG declined to comment, a source close to the firm reportedly claimed that no official claim has been lodged with the courts.

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