Carillion’s liquidators have started a £250 million legal claim against the auditors of Carillion, which collapsed in 2019 with billions of pounds worth of liabilities, according to press reports.
The Times said that the government agency in charge of liquidating Carillion had filed a legal claim in the High Court against accountancy firm KPMG. It added that full details of the legal case were expected by the end of the year.
Carillion failed in 2018 with the loss of 3,000 jobs along with tens of thousands more in its supply chain.
The Times claimed that the Official Receiver had accused KPMG of negligence with its auditing, leading the Carillion board to believe the company was “profitable and sustainable”.
The news report said that the Official Receiver had quantified around £250 million in dividends and advisory fees paid between 2014 and 2017, which it planned to recover for creditors.
It also quoted a source close to KPMG as saying it was the company’s view that the failure of Carillion was solely down to its own board and management.
In January the UK government agency, the Insolvency Service, launched a legal bid to ban the former directors of Carillion from holding senior positions in the boardroom.
The Financial Reporting Council announced a formal complaint in September against KPMG and others regarding allegedly false and/or misleading information provided to the FRC in Carillion audit quality inspections.
A source close to KPMG said that to date a claim had not been served on the company. KPMG declined to comment.