A District Court has dismissed the First Amended Class Action Complaint against KPMG US relating to audit reports relating to the annual financial statements of Bermuda-based Annuity & Life Re (Holdings), Ltd. The Complaint alleged that Annuity & Life Re understated its liabilities and overstated its profits and failed to comply with Generally Accepted Accounting Principles, and that KPMG failed to follow Generally Accepted Auditing Standards in its audits of the company. The Court found that the audits were performed by KPMG Bermuda, rather than KPMG US, and that KPMG US did not control the audit process or make any independent misrepresentations. Schnall v. Annuity & Life Re (Holdings) Ltd., Case No. 02-2133 (D. CT. Aug. 10, 2006).
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