KPMG faces $1.4-billion lawsuit for alleged role in Bridging Finance’s collapse

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 92%

Brasil Notícia Notícia

Brasil Últimas Notícias,Brasil Manchetes

Receiver PricewaterhouseCoopers alleges that ‘throughout KPMG’s tenure, the Bridging funds materially misrepresented the value of their assets and financial performance’

Bridging’s receiver, meanwhile, is directly targeting KPMG, seeking damages for breach of contract, negligence and negligent misrepresentation. KPMG started auditing the financial statements of Bridging’s largest fund, then known as the Sprott Bridging Income Fund, in 2016, then took over the auditing role of all of Bridging’s funds by 2019.

Numerous audit firms have settled claims over the past decade for their alleged roles in scandals. In 2013 Ernst & Young paid $117-million to settle claims related to its role in the Sino-Forest Corp. fraud; in 2015 Coopers & Lybrand paid $240-million to settle legal claims tied to its alleged negligence when auditing Castor Holdings Ltd.

When estimating expected losses and the necessary collateral to protect investors, Bridging used a risk assessment model that allowed for significant judgment from senior management, and was often deficient.

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 5. in BR

Brasil Últimas Notícias, Brasil Manchetes