Jury Awards $31.8M Against KPMG In Negligence Suit

Law360, New York (October 10, 2008, 12:00 AM EDT) -- A New Jersey jury has awarded $31.8 million in damages to the plaintiff in a negligence case accusing accounting firm KPMG LLP of failing to detect widespread financial fraud at a company undergoing a merger with the plaintiff.

A jury in the New Jersey Superior Court on Friday found KPMG liable for professional negligence and negligent misrepresentation in connection with its audit of Papel Giftware Inc. before the company's merger with plaintiff Cast Art Industries LLC in 2000, attorneys from Eagan O'Malley & Avenatti LLP said....
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