Focus then shifted to go after the Auditor. KPMG sued over audit...

Focus then shifted to go after the Auditor.

KPMG sued over audit work for collapsed miner

Hannah WoottonReporter
Apr 26, 2022 – 4.08pm
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Shareholders in failed mining company CuDeco have accused accounting giant KPMG of misleading and deceiving the market in its audits of the collapsed outfit, adding to the slew of investor class actions faced by professional services firms.
In a statement of claim filed with the Federal Court, the disgruntled investors claim KPMG failed to act with due care and skill, making representations about CuDeco’s financial reports that were “materially misleading” and “not based upon reasonable grounds”.

The class is also suing the liquidated company itself and its former directors Noel White, Peter Hutchison and Dianmin Chen, alleging they misled investors about the value of ore reserves in CuDeco’s Rocklands mines.

The court case builds on a growing trend of investors focusing their litigation efforts on the deep-pocketed advisers to collapsed companies, such as their auditors or lawyers, rather than the failed entities.