The liquidators of Carillion have struck a deal with a specialist litigation funder to fund a £250 million lawsuit against the outsourcer’s former auditor KPMG, according to reports.
Dispute finance provider Litigation Capital Management entered into the new litigation finance agreement with certain Carillion entities, in liquidation, it announced last week.
The AIM-traded firm said the agreement to provide a litigation finance facility was to fund a claim in the Commercial Court of the High Court of England and Wales against the Carillion group's former auditor, KPMG.
It said the claim arose from KPMG's conduct of its audits of the group's financial statements, adding that the losses which form the claim were expected to exceed £250m.
Patrick Moloney, chief executive officer at LCM, said: “As a pioneer of the litigation finance industry, LCM has long and deep experience in funding insolvency-related disputes... As such, LCM is extremely well placed to tailor a finance package to pursue these claims.”
Executive vice-chairman Nick Rowles-Davies added that the investment demonstrated the company’s “prominence and pedigree” in the disputes finance industry, particularly its position as a “funder of choice” in the UK insolvency market.