Environment & Energy Report

KPMG Likely to Face Class Action Claims in Miller Energy Suit

June 30, 2020, 6:46 PM

KPMG will likely have to defend class allegations in a federal Tennessee court that its audit failures helped Miller Energy Resources Inc. overstate the value of certain oil and gas assets on financial statements in violation of federal securities laws.

Magistrate Judge Debra C. Poplin recommended Monday that the U.S. District Court for the Eastern District of Tennessee grant would-be class plaintiffs’ motion for class certification and appointment of representatives and counsel.

The lawsuit alleges, among other things, that KPMG issued audit reports containing unqualified opinions on Miller Energy’s financial statements and disregarded significant gaps in internal controls with respect...

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