China Forestry’s Liquidators Sue KPMG for $166 Million

China Forestry Holdings Co.’s liquidators are suing KPMG LLP for more than HK$1.3 billion ($166 million), citing the auditor’s negligence when assisting in the company’s listing in Hong Kong.

KPMG failed to detect during the pre-IPO audit that then-executives of China Forestry falsified the company’s plantation assets and revenue, according to information contained in a judgment related to the court proceedings. A Hong Kong court will hear the case in June 2021 for 10 weeks, the filing showed.