$200 Million Later, KPMG Settles With Rite Aid, Oxford Shareholders
KPMG stated that the firm resigned from its audit of Rite Aid in 1999 after alerting Rite Aid's audit committee of weaknesses in the company's internal audit controls.
In addition, KPMG has agreed to pay $75 million to shareholders of Oxford Health Plans after a computer snafu at Oxford in 1977 resulted in collection and payment delinquencies. KPMG was accused in the lawsuit of giving a false and misleading opinion.
KPMG denies wrongdoing in both cases and states that it agreed to the settlements "for practical business reasons."