Ex-TierOne Shareholders Sue KPMG Over Faulty Audit

Law360, New York (January 17, 2013, 3:36 PM EST) -- Former TierOne Bank shareholders on Monday hit KPMG LLP and two senior executives at the accounting firm with a proposed class action, alleging that they ignored “red flags” in the failed Nebraska bank's mortgage portfolio that ultimately led to its failure.

The former TierOne shareholders allege in the complaint, filed in Nebraska federal court, that KPMG and two of its executives, partner John J. Aesoph and senior manager Darren M. Bennett, made false claims about the quality of audits they performed for TierOne when they gave...
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