Following a wave of corporate scandals that have left auditors vulnerable to legal actions, KPMG has decided to settle the private lawsuits to save years of protracted and distracting litigations, to avoid direct and indirect costs.
Even though it has decided to settle the lawsuits, the company denies any wrong doing at both Rite Aid and Oxford Health Plans, pointing to the lack of regulatory involvement on its part.
Claiming victimization from Rita Aid’s management, KPMG agreed to pay $125 million to settle the issue and stated that none of its staff had been charged in civil or criminal regulatory actions. In addition, it is settling all Oxford Health Plans-related legal issues for $75 million.
