KPMG Says Prior Settlement Bars TierOne Shareholder Suit

Law360, New York (August 19, 2013, 7:16 PM EDT) -- Accounting giant KPMG LLP and two executives asked a Nebraska federal judge on Friday to ax a proposed class action filed by former shareholders of TierOne Bank over problems in the failed bank's mortgage portfolio, arguing the action is barred by a previous settlement of a suit against TierOne's CEO.

The proposed class action, filed in Nebraska federal court, alleged that KPMG partner John J. Aesoph and senior manager Darren M. Bennett ignored “red flags” in the mortgage portfolio that ultimately led to the bank's failure. ...
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