Carillion creditors launch damages claim against KPMG over audit failures
A High Court claim has been filed against KPMG over its audits of Carillion’s financial statements in the run-up to what became one of the largest corporate collapses in UK history.
The losses which form the subject matter of the claim are expected to exceed £250mln, Litigation Capital Management (LCM) said, and would further strengthen its existing portfolio of investments.
Carillion, which at the time of its collapse in 2018 had more than 190,000 employees working on private and government contracts to build or maintain schools, roads and hospitals, entered compulsory liquidation under a £1.5bn debt pile after it failed to secure a rescue deal with lenders or the government.
It had been given a clean bill of health by KPMG before its ultimate downfall.
LCM is an alternative asset manager specialising in dispute financing solutions internationally.
LCM chief executive Patrick Moloney said: “As a pioneer of the litigation finance industry, LCM has long and deep experience in funding insolvency related disputes. As such, LCM is extremely well placed to tailor a finance package to pursue these claims.”
Nick Rowles-Davies, executive vice Chairman of LCM, said the agreement demonstrates the company’s prominence in the disputes finance industry and its position as “funder of choice” in the UK insolvency market.
He added: “We are delighted to be supporting thousands of creditors who have suffered as a consequence of the biggest insolvency in recent UK history.”