(Alliance News) - Watchstone Group PLC said on Monday it had agreed a settlement of its claim against KPMG LLP, entailing the professional services firm pay the insurance software group GBP5 million without admission of liability.

The settlement comes following Watchstone's GBP14 million claim in November 2021 over alleged failings in KPMG's 2013 audit of the company. Watchstone claimed it incurred losses due to problems in the audit.

A KPMG UK spokesperson confirmed it had reached an agreement with Watchstone. In 2021, KPNG said it believed the shortcomings in its audit did not cause the losses claimed.

The case was not expected to reach trial until 2024.

On June 11, 2018, audit watchdog the Financial Reporting Council fined KPMG GBP4.5 million over its work on Watchstone - known as Quindell at the time. The penalty was later reduced to GBP3.2 million after KPMG agreed to settle.

Shares in Watchstone rose 7.8% to 26.98 pence in London on Monday afternoon.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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