Court OKs Suit Alleging KPMG Failed To Detect Fraud

Law360 (June 29, 2006, 12:00 AM EDT) -- In the latest blow to KPMG LLP, a court has greenlighted a lawsuit against the Big Four accounting firm brought by shareholders of a fraud-ridden company that lapsed into bankruptcy after KPMG, the company’s auditor, failed to perform proper audits.

The New Jersey Supreme Court ruled Wednesday that shareholders of Physician Computer Network, a medical software maker, can sue KPMG, the U.S. unit of Dutch parent firm KPMG International, even though a trial court had previously dismissed the charges.

Between 1993 and 1998, KPMG acted as...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.