KPMG fails to strike out parts of Hyflux’s statement of claim
The High Court notes that the plaintiffs also ‘adequately pleaded’ KPMG’s alleged breach of contract and duty
KPMG has not managed to persuade the High Court to strike out parts of the statement of claim from its former client Hyflux and two of Hyflux’s units, after the auditor’s application in the lead up to trial was dismissed on Wednesday (Jul 10).
Hyflux, Hydrochem and Tuaspring are suing KPMG for breach of obligations and negligence relating to the previous preparation of their accounts and financial statements, seeking compensation of over S$684.6 million based on the statement of claim filed in 2022.
Hyflux’s financial statements were stated to have been prepared in accordance with the Singapore Financial Reporting Standards and showed the group was financially well, the plaintiffs alleged, but they were actually misstated because of failure to recognise or cater for losses or impairment relating to Tuaspring.
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