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KPMG Engaged in Malpractice, New Jersey Court Says

KPMG LLP engaged in accounting malpractice in connection with a giftware maker’s merger, a New Jersey appeals court ruled. In the same decision, the court ordered a new trial on damages, saying a jury improperly found the firm should pay $31.8 million.

The court ruled Aug. 26 on a 2008 trial in which a jury found KPMG negligent in its work as auditor for Papel Giftware Inc., a Cranbury, New Jersey, company that merged in 2000 with Cast Art Industries of Corona, California.