Texarkana, Ark. (April 8, 2004) -- Big Four firm KPMG and its former consulting unit, BearingPoint, agreed to separate settlements of $17 million each to settle a class action lawsuit related to the billing of travel-related expenses for their clients.

Under the settlement, approved last week by Circuit Court Judge Kirk Johnson, both firms denied any wrongdoing. The agreement resolves KPMG's and BearingPoint's portion of a class action lawsuit originally filed in Miller County, Ark., in October 2001, which alleged that the two firms, along with PricewaterhouseCoopers, Ernst & Young and the U.S. arm of Cap Gemini Ernst & Young, overcharged clients for costs and expenses paid to third-party travel vendors by allegedly billing clients for the full face amount of costs, while at the same time receiving back-end rebates from vendors through confidential contracts.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access