KPMG Mauritius was sued by a group of South African pensioners

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Conversation about KPMG Mauritius and Leaderguard Spot Forex Lawsuit

Nik: I understand that in February 2007, KPMG Mauritius was sued by a group of South African pensioners who lost millions when investing in Leaderguard Spot Forex (LSF), a foreign exchange investment scheme backed by KPMG and Denmark-based Saxo Bank. Do you have any details about the outcome of that action?

ChatGPT: The legal proceedings initiated in February 2007 by South African pensioners against KPMG Mauritius, related to the collapse of the Leaderguard Spot Forex (LSF) investment scheme, have had a complex trajectory without a definitive public resolution.

Background

Leaderguard Spot Forex was a Mauritius-based foreign exchange investment scheme attracting approximately 1,200 investors, mainly from South Africa, Namibia, and Botswana. The scheme collapsed in 2005, leading to estimated losses exceeding $55 million. Investors alleged that KPMG Mauritius, as the auditor, failed to identify or report irregularities within the scheme.

Legal Developments

  • 2007: The liquidator of LSF, José Thibaut, initiated legal action against KPMG Mauritius in Mauritius' Supreme Court. This lawsuit was withdrawn in 2009 following a court decision that liquidators could not sue auditors if company directors were complicit in wrongdoing.<ref>{{#invoke:citation/CS1|citation

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  • 2009: Investors obtained a court order from the KwaZulu-Natal High Court in South Africa permitting attachment of KPMG International’s trademarks and remuneration owed by KPMG Services (Pty) Ltd in South Africa. This strategy aimed at a potential $38 million claim against KPMG International.<ref>{{#invoke:citation/CS1|citation

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  • Subsequent Efforts: Attempts to relaunch legal actions against KPMG Mauritius occurred, with new witnesses reportedly prepared to testify about alleged assurances from KPMG representatives regarding investment safety. However, publicly available details on outcomes of renewed litigation remain scarce.<ref>{{#invoke:citation/CS1|citation

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Current Status

Currently, no public records indicate that investors have successfully recovered losses through litigation against KPMG Mauritius or KPMG International. Legal actions have been complicated by jurisdictional issues and complexities inherent in international accounting firm structures.

For further detailed or updated information, consulting specialized legal databases or professionals in international financial litigation is recommended.

References

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