KPMG Settles With New Century
June 24, 2010: An exclusive from Steven Thomas, attorney for the New Century Liquidating Trustee:
“The New Century Liquidating Trustee and KPMG LLP have entered into a confidential settlement agreement, pursuant to which the lawsuits and arbitration against KPMG LLP and KPMG International have been resolved.”
Update: July 30, 2010
The court appointed Liquidating Trustee and Plan Administrator for New Century, Mr. Allan M. Jacobs, provided this response when asked ot confirm Mr. Thomas’ statement:
“Mr. Thomas’ response is accurate and complete.”
More details as they emerge.
Really? Why hasn’t there been any other release of the news?
You tell me. But it comes directly from the lawyer for the Trustee.
The bad thing for KPMG at New Century is that certainly looked like the partner was told that the loan loss reserves should be higher by his staff and he ignored them to keep New Century happy. In light of the damning evidence, why did the plaintiffs settle> Because these cases can drag on forever and you’re never certain of the outcome. You can’t put the auditors out of business because if you do, they can’t pay the claims. Anyway, the report of the liquidating trustee should be available to creditors and shareholders of New Century. So I am not sure how quiet they can keep this settlement.