NEW YORK, April 20 – LAWFUEL – The Law News Network – KPMG LLP made the following statement today in regard to its civil settlement with the Securities and Exchange Commission (SEC) in the Xerox Corporation matter.
KPMG is pleased to have reached a settlement with the Securities and
Exchange Commission in the Xerox Corporation matter. This settlement is
reflective of the firm’s efforts to work with our regulators in a cooperative
way in order to help strengthen public confidence in the capital markets. As
a condition of the settlement, KPMG neither admits nor denies the SEC’s
allegations and findings.
The settlement, which represents events from an earlier period — in some
cases as much as eight years ago — does not involve findings that KPMG’s
conduct was fraudulent or reckless. That is consistent with the firm’s
position since the SEC filed its suit in January 2003. The SEC has accordingly
dismissed all fraud-related claims against KPMG.
In addition, the settlement does not include any injunctive relief, which
the SEC initially requested in its complaint. The settlement is a final
resolution of all Xerox-related matters between the SEC and the firm.
It is the goal of KPMG to work constructively with regulators and, where
appropriate, resolve disputes in a positive manner, through negotiations and
discussions. In this regard, KPMG has agreed to certain undertakings,
consistent with the firm’s commitment to continuously improving audit quality.
Our success as a professional services firm is inextricably linked to our
performance, our reputation, and our commitment to leadership and integrity.
KPMG foresees a productive and effective working relationship with the SEC —
as well as further improvements in audit quality — as a result of this