KPMG Agrees to Pay $35 Million to Resolve Energy Investor Action

Consulting group KPMG LLP has agreed to pay $35 million to resolve claims from a class of Miller Energy Resources Inc. investors who say audit failures let the oil and gas company overstate some asset values, according to documents filed in federal court in Tennessee.

Named plaintiff Lewis Cosby alleged that KPMG issued faulty audit reports on Miller Energy’s financial statements and ignored significant gaps in internal controls, helping conceal the oil and gas company’s fraud. KPMG agreed in 2017 to pay $6.2 million to resolve a lawsuit by the Securities and Exchange Commission making similar allegations.

Judge Thomas A. ...