KPMG Can’t Get Out of Class-Action Suit Filed By Miller Energy Investors
A Tennessee federal judge on May 7 greenlighted class certification in a multiyear lawsuit against KPMG by investors of the now-defunct oil and gas company Miller Energy Resources Inc., despite KPMG’s best efforts to get the lawsuit thrown out. According to Law360, U.S. Magistrate Judge Debra C. Poplin had recommended that the Miller Energy investors […]
The Truth About Public Accounting, Part III: The ‘A’ In PCAOB Stands For ‘Accounting’
An article titled “PCAOB Inspections: Public Accounting Firms on Trial” describes the results from an academic study and survey about the effects on auditors who have been subject to PCAOB inspections. One of many good observations from that academic study is repeated below: Respondents collectively perceive that audit quality has improved as a result of […]
The Truth About Public Accounting, Part II: PCAOB Inspection Hysteria — How to Fix It
While there is a consensus that the PCAOB’s existence has improved audit quality, it is also clear that the PCAOB has contributed an unhealthy level of hysteria to the auditing profession. That hysteria has led some professionals to make horrible choices (as seen in the KPMG inspection selection leak scandal). That hysteria has also driven […]
Big 4 Lawsuits: SCANA Investors vs. Deloitte, Miller Energy Investors vs. KPMG, Gridsum Investors vs. PwC
Plus, Illinois resident drops lawsuit against Deloitte Consulting, and PwC wants the city of Los Angeles to pay a price. Deloitte Wants Investor’s Nuclear Energy Project Suit Tossed [Law360] Deloitte doesn’t think it should have to face a lawsuit accusing the firm of issuing audit reports that misled investors on the progress SCANA Corp. was […]
Big 4 Lawsuits: FDIC vs. EY, Investors vs. Mattel and PwC, Carillion vs. KPMG
Federal regulator sues auditor Ernst & Young for negligence over First NBC collapse [New Orleans Advocate] The FDIC is suing Ernst & Young in the $1 billion failure of First NBC Bank in 2017, alleging that EY missed clear red flags related to several soured loans and failed to raise the alarm to the bank’s […]
Exxon Mobil May Have Escaped an SEC Penalty Over Climate-Change Accounting But Not a Class-Action Lawsuit
Earlier this month, we reported that the Securities and Exchange Commission ended its two-year accounting probe into how Exxon Mobil Corp. calculates the value of its assets and whether the oil and gas company failed to alert investors about potential climate-change risks. The SEC decided to take no enforcement action against Exxon Mobil, but investors […]
Judge Allows Class-Action Suit to Proceed Against KPMG Over Shoddy Miller Energy Audit
A federal judge in Tennessee on Aug. 2 declined to throw out a securities class-action lawsuit against KPMG, in which investors are accusing the Big 4 firm of screwing up the audit of now-defunct oil and gas company Miller Energy Resources Inc. In Lewis Cosby et al. v. KPMG L.L.P., the investors say they got […]
Crumbs Stock Rises a Whopping 950 Percent at the Hint of a Lifeline
Oh, it's worth noting that it was trading at 3 cents: An investor group that includes the Fischer Family and Marcus Lemonis, Chairman and CEO of Camping World and Good Sam Enterprises and star of CNBC's "The Profit," confirmed it plans to provide financing for the struggling cupcake chain as a prelude to an acquisition. […]