Pascagoula, Miss.-based Singing River Health System has filed a lawsuit against KPMG claiming the national accounting firm made significant auditing errors, including "masking" the underfunding of the system's pension plan, according to a Sun Herald report.
Singing River is suing KPMG for negligence, breach of contract and professional malpractice for allegedly committing "egregious failures in auditing Singing River's financial statements," which led to an $88 million adjustment, according to the report.
According to the lawsuit, KPMG and its predecessor audited Singing River's books for more than 34 years. However, in 2013, the system hired Horne LLP to audit its books, and it was Horne that discovered the shortfall.
Singing River is currently facing two lawsuits over its failed pension plan, and the system said it could have "acted sooner with accurate information," instead of the inaccurate and inadequate information KPMG provided, according to the report.
In its lawsuit, Singing River has requested a jury determine what damages are owed, according to the report.
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