KPMG has settled a £1.3bn lawsuit brought by Carillion’s liquidators, who claimed the auditor was negligent and missed serious red flags in the outsourcing firm’s accounts ahead of its disastrous collapse in 2018.
The lawsuit – which related to audits of Carillion accounts between 2014 and 2016 – had been launched by Britain’s official receiver, which is attempting to recoup losses on behalf of Carillion’s creditors which are owed money by the failed company. Those creditors include the UK tax authority, HMRC.
