KPMG Sued for $600 Million Over Alleged Sloppy Auditing in #Dubai Abraaj Scandal - Bloomberg

KPMG Sued for $600 Million Over Alleged Sloppy Auditing in Dubai Abraaj Scandal - Bloomberg

KPMG LLP was sued for at least $600 million over its role in the insolvency of Dubai private-equity firm Abraaj Group, the latest in a string of complaints of sloppy auditing made against the Big Four firm.

The claimants, two units of Abraaj now in liquidation, allege that KPMG accountants “failed to maintain independence and an appropriate attitude of professional skepticism,” and breached their duty of care when auditing the private-equity firm, according to court documents filed in Dubai on Nov. 3.

If KPMG and its local Lower Gulf subsidiary had complied with their duties then “irregularities” relating to the firm’s financial statements would’ve been identified sooner, the claimants said.

Abraaj, which managed some $14 billion at its peak, collapsed into insolvency in 2018 after being accused of misusing investor funds. The firm’s founder and chief executive officer Arif Naqvi is alleged to have stolen more than $250 million by U.S. prosecutors. He denies any wrongdoing.