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Endowment fight – Lawsuit in U.S. court

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The fourth largest U.S. accounting firm is defending itself in federal court in Manhattan against charges by a nonprofit manager of high school and college endowment funds that it overlooked $137.6 million in losses from unauthorized, high-risk investments, Bloomberg news reported Oct. 10

Common Fund, which manages $26 billion for 1,400 schools – including Harvard, Yale and Penn State, alleges that KPMG LLP used sloppy auditors who failed to find that an investment advisor to Common Fund was squandering millions, Bloomberg said.

KPMG said it was Common Fund that “cut corners” by never asking its auditors to investigate the friendly ties between the fund and its independent investment advisor.

For full story, go to AOL.

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