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Frances Ball 5 Aug 2019 02:49pm

KPMG faces legal threat over Carillion

US law firm Quinn Emanuel has been hired to launch a lawsuit against KPMG, over allegations that its audit of Carillion was negligent

The law firm has been hired by the agency that is unwinding Carillion, as well as a civil servant working on behalf of Carillion’s creditors, according to the Financial Times

PwC, which is managing Carillion’s liquidation, is also one of the parties that have hired Quinn Emanuel.

The FT reports that Quinn Emanuel has appointed barristers and is preparing to notify KPMG of its plans to file claims at the High Court.

The Financial Reporting Council (FRC) is already investigating KPMG’s audit of Carillion, which filed for compulsory liquidation in early 2018.

The construction outsourcing company had £7bn in liabilities when it folded.

The fallout from the Carillion scandal sparked a raft of reviews of the UK audit profession.

KPMG has also been told by the board of Goals Soccer Centres to prepare for a legal challenge over its audit work at the football pitch operator, which last week faced delisting over the accounting crisis.

KPMG declined to comment. Quinn Emanuel did not respond immediately for comment.

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