KPMG pays $200 Million to settle lawsuits

Rite Aid, which overstated profits by up to $1.6bn, was one of the largest scandals to shake corporate America until it was eclipsed by the likes of Enron and WorldCom.

Former Rite Aid executives were charged last June with accounting fraud over two years to 1999. It was alleged they falsely reduced the amount they owed suppliers. The matter was later settled.

KPMG  is to pay $125m to settle class actions by Rite Aid shareholders. It will also pay $75m in a separate case to settle lawsuits related to its audit of Oxford Health. Both settlements comes to a total of $200 million are subject to court approval.

Oxford Health agreed to pay $250,000 to settle charges with regulators, who had accused the firm of inadequate co-operation during their investigation into its failure to restate second quarter results in 1997 to correct the double counting of $25 million in revenue.

Source: Standard