The U.S. Supreme Court ordered reconsideration of a decision allowing a lawsuit against KPMG LLP for allegedly mishandling the audits of three funds that lost millions of dollars invested with Bernard Madoff’s Ponzi scheme.
The justices today revived efforts by KPMG to direct at least some of the claims to arbitration. A Florida state appeals court had said 19 investors weren’t bound by an arbitration agreement KPMG had struck with the three funds, known in court papers as the Rye Funds.
In a five-page opinion, the Supreme Court said the lower court failed to consider whether two of the claims in the case could be resolved in arbitration.
The case is KPMG v. Cocchi, 10-1521.
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