A legal claim against Carillion’s auditor KPMG has moved a step closer and could reach £1bn in value.
Legal papers were filed on Friday ahead of a full claim being launched, which is expected to happen in the next few weeks.
A professional negligence claim was filed on behalf of the Official Receiver, which is handling the contracting group’s liquidation with the aim of maximising returns for creditors. The filing names Carillion Plc and Carillion Construction Ltd as claimants, and KPMG as the defendant.
The particulars of the claim are stilling being finalised and Construction News understands the receiver could pursue KPMG for up to £1bn. Of this, around £250m represents dividends that the contractor paid out in the years before its collapse. If the claim also includes trading losses incurred, then the overall value could reach £1bn.
KPMG declined to comment on the claim, which was first reported by Sky News.
The core of the legal action focuses on dividends, bonuses and advisory fees of around £250m, which it claims would not have been paid between 2014 and 2017 if KPMG had spotted mis-statements in the company’s accounts.
Separately, the Financial Reporting Council has been investigating KPMG’s auditing of Carillion between 2014 and its collapse in early 2018. It was reported in March that the auditor was moving towards a settlement with the FRC, which could reach £25m.
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