Watchstone group announced the settlement yesterday in a regulatory filing. KPMG has not commented further than confirming a settlement has been reached with Watchstone Group.

The original claim filed last year against KPMG by Watchstone Group was for £13.73m. Watchstone claimed that KPMG was negligent and/or breached its contractual and/or statutory duties in the conduct of the 2013 audit.

Prior to the claim, the big four firm was fined in 2016 by the FRC for £3.15m over its audit of Quindell’s accounts following admission of misconduct by KPMG and its audit engagement partner. Watchstone references this fine in its decision to make the November 2021 claim.

In August 2020, Scottish Financial News reported Watchstone also sued PwC for £63m over allegations that a senior employee at the firm disclosed confidential information about a client to an investment banker working on a deal. This is claim is yet to be resolved.