KPMG Tries To Shake Action Over New Century Audit

Law360, New York (January 14, 2010, 2:53 PM EST) -- KPMG LLP is seeking to rid itself of a shareholder class action accusing it of issuing an inaccurate audit report for failed subprime mortgage lender New Century Financial Corp., arguing the plaintiffs cannot prove loss causation.

KPMG filed a motion for summary judgment Wednesday in the U.S. District Court for the Central District of California.

The suit seeks to hold KPMG liable for alleged misrepresentations and omissions in its outside audit of New Century’s 2005 financial statements, which New Century investors claim caused them to lose...
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