Lender Says Bogus KPMG Audit Enabled $525M Default

Law360, New York (March 29, 2011, 8:16 PM EDT) -- KPMG LLP, the U.S. member firm of Swiss-based auditing group KPMG International, was sued in New York on Tuesday over a 2008 audit that allegedly allowed former Texas Rangers owner Tom Hicks to conceal his financial troubles and deny lenders a chance to recover $525 million in debt.

The lender, GSP Finance LLC, filed suit in the Supreme Court of the State of New York, County of New York, alleging that without KPMG's fraudulent audit, it could have recovered the full debt, by accelerating repayments or...
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