Bloomberg News has reported a federal judge ruled that creditors of Spiegel Inc. can sue KPMG LLP for allegedly giving bad advice that cost the company at least $100 million before it filed for bankruptcy.
Spiegel’s committee of unsecured creditors said it will sue KPMG on grounds of “professional malpractice,” according to reports. KPMG was hired to audit Spiegel’s 2000 and 2001 financial statements.
“The committee is authorized to commence and pursue all claims against KPMG to the full extent permitted by law,” U.S. Bankruptcy Judge Cornelius Blackshear said in his ruling, reported Bloomberg.
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