Creditors with more than $1 billion in losses from the collapse of Oceanografia S.A. de C.V. have sued KPMG LLP, saying the auditor should have detected the alleged financial fraud that led to the offshore oil services provider’s demise, WSJ Pro Bankruptcy reported. Hundreds of millions of dollars were advanced to Oceanografia, which built and maintained platforms and pipelines in the Gulf of Mexico. Citigroup Inc., the lender, shut off credit after allegations emerged that the invoices supporting some cash advances were forged, sending Oceanografia into bankruptcy. Auditor KPMG should have detected the alleged fraud, and should be held accountable to bondholders and other creditors of the failed company, according to a complaint filed this week in Delaware’s Court of Chancery. KPMG declined to comment.
