The litigation trustee for Hollinger Inc., the holding company once controlled by deposed newspaper baron Conrad Black, said it has settled its lawsuit with the accounting firm KPMG.
KPMG was the auditor for Hollinger until December 2003, a period when, according to a special committee report of a related company, Hollinger International, Black and other top executives allegedly took improper fees and arranged self-serving contracts.
“The settlement entails no admission of liability on the part of KPMG LLP,,” the litigation trustee’s statement said. “The terms of the settlement include releases in favor of KPMG LLP from Hollinger and its subsidiaries, as well as from third parties involved in related Hollinger litigation.” Other terms are confidential, the trustee added.
Black was convicted in federal court of fraud and obstruction of justice, but was freed earlier this year when the U.S. Supreme Court agreed to hear his appeal of the convictions. The high court earlier this year limited the use of so-called “honest services” fraud prosecution, charges involved in some of the convictions against Black.
Hollinger previously settled its lawsuit against its former law firm, Torys LLP, which also did not admit liability.
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