New Trial Ordered On $32M In Damages Against KPMG

Law360, New York (August 26, 2010, 7:34 PM EDT) -- A New Jersey appeals court on Thursday affirmed a jury's finding that KPMG LLP was negligent for failing to detect fraud at a giftware company it audited before a merger, though it ordered a new trial on the jury's $31.8 million damages award.

A three-judge panel of the New Jersey Superior Court Appellate Division affirmed the jury's verdict on liability, reasoning that plaintiff Cast Art Industries LLC had provided sufficient evidence that KPMG owed it a duty of care under the Accountant Liability Act.

However, Judge...
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