Current Cases/News

NPR recoveries total $104 million against accounting industry

July 1, 2005

Nix, Patterson & Roach has recovered $104 million from four major accounting firms on behalf of victims of various billing abuses by these firms. In October of 2001, NPR filed a class action lawsuit against the largest accounting frim in the United States alleging that these firms fraudulently over-billed their clients in excess of one-hundred million dollars for travel-related expenses.

Through the Warmack-Muskogee Limited Partnership, et al. v. PriceWaterHouse Coopers, L.L.P., et al. litigation, asserted in Miller County, Arkansas, the class alleged that the accounting firms systematically billed their clients for the full face amount of certain travel expenses, including airline tickets, hotel rooms and car rental expenses, while pocketing undisclosed rebates and volume discounts received under contracts with various third-party vendors. At times, the rebates retained by the accounting firms reached and exceeded 40% of the purchase price of the travel-related services.

NPR settled the claims of the class against PWC, KPMG, L.L.P., Bearingpoint, Inc., Ernst & Young, L.L.P. and Cap Gemini Ernst & Young U.S., L.L.C. The trial court ordered final approval of the settlements, totaling $104 million. This settlement is believed to be the largest class action settlement in Arkansas history.