May 07, 2021
  • Classes include people who got certain Miller Energy stock.
  • Investors allege KPMG aided oil and gas company’s fraud.

Consulting giant KPMG will face class action allegations from Miller Energy Resources Inc. investors who say audit failures let the oil and gas company overstate some asset values.

Judge Thomas Varlan of the U.S. District Court for the Eastern District of Tennessee agreed Friday with a magistrate judge’s recommendation to grant the investors’ motion for class certification and appointment of representatives and counsel.

The case now has two certified classes. The first covers people or entities that acquired common or Series C or D preferred stock between Aug. 29, 2011, and Oct. 1, 2015. The second class includes people or entities that got Series C or D preferred stock traceable to Miller Energy’s offering documents.

The investors alleged in their lawsuit that KPMG issued audit reports with unqualified opinions on Miller Energy’s financial statements and ignored significant gaps in internal controls, helping conceal the oil and gas company’s fraud. KPMG reached a $6.2 million settlement with the Securities and Exchange Commission over the matter in 2017.

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Investors Lewis Cosby, Eric Montague, and Martin Ziesman are represented by Cohen, Milstein, Sellers & Toll PLLC; The Baker Law Firm; and Gordon Ball PLLC.

The complete article can be viewed here.