KPMG Prevails Against Trustee Of Bankrupt Dot-Com

Law360, New York (March 25, 2008, 12:00 AM EDT) -- A federal appeals court has sided with KPMG LLP in its clash with a bankruptcy trustee who filed a $600 million lawsuit alleging the accounting giant breached its fiduciary duties in the run-up to the dot-com crash.

In an order handed down Friday, the U.S. Court of Appeals for the Seventh Circuit upheld a district court's dismissal of the suit, which accused KPMG of breaching its duty of care to shareholders of its bankrupt client, Internet consulting firm marchFIRST Inc.

The trustee overseeing marchFIRST's Chapter 7...
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