Court victory for KPMG in multi-million euro dispute over P+S shipyard restructuring

The auditing firm KPMG has scored a significant victory in the legal dispute over its consulting activities at the former P+S shipyards. After years of legal disputes, all claims against the consultancy firm were dismissed in the first instance.

Extensive allegations not enforceable

At the center of the proceedings was a restructuring report prepared by KPMG in 2009 for the shipyards in Wolgast and Stralsund, which later became insolvent. The insolvency administrator Brinkmann & Partner had accused the Big Four company of having caused considerable damage by making incorrect restructuring statements. This argument was not convincing before the Hamburg Regional Court.

The oral judgment was handed down on May 8, while the written statement of reasons is still pending. The decision is not yet legally binding (case number 326 O 7/16).

Financial dimensions of the legal dispute

The financial implications of the case are considerable: the value in dispute amounts to around 514 million euros in claims for damages. In addition, the insolvency administration attempted to reclaim fees of around EUR 9 million that the shipyards had paid to KPMG prior to their insolvency.

The legal confrontation, which has been ongoing since 2015, concerns the consulting services for P+S Werften, which had to file for insolvency in 2012 despite extensive restructuring efforts with around 1,750 employees.

Background and outlook

The current ruling is one in a series of legal decisions relating to the failed shipyard restructuring. The same court had already rejected claims by the former owner Hegemann Group against KPMG in 2019.

Whether insolvency administrator Berthold Brinkmann will pursue legal action remains to be seen. Neither party has yet commented on possible next steps. The industry service INDat was the first medium to report on the decision.

The ruling could have far-reaching implications for the assessment of restructuring reports and the liability of consulting firms in restructuring processes.