KPMG Audit To Blame For Madoff Losses, 2nd Circ. Hears

Law360, New York (April 12, 2012, 7:12 PM EDT) -- A group of investors argued Wednesday that KPMG LLP auditors and a “no-audit audit” are to blame for their losses to Bernard L. Madoff's Ponzi scheme, pressing the Second Circuit to revive a fraud suit against the accounting firm.

KPMG was able to beat the suit, brought by hedge funds connected with Meridian Horizon Fund LP, when a federal judge ruled that an allegedly shoddy audit of certain Madoff feeder funds is not grounds for a fraud case. But KPMG's audit was so slipshod it was...
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