(CN) – The 5th Circuit tossed out two class actions claiming accounting giant KPMG didn’t have the licensing it needed to practice in Texas between 1984 and 1999. Judge Jolly said the claims for injury, brought by competing accountants and KPMG’s Texas clients, are “too speculative” to establish standing.
In the first class action, lead plaintiff Little, Roberts & Co. claimed it lost business to KPMG during the national firm’s unlicensed period.
A second class action was filed by a group of KPMG’s Texas clients, who claimed KPGM misrepresented the nature of its business and overcharged them for services.
A federal judge dismissed both class actions, and the New Orleans-based appeals court affirmed.
Judge Jolly called the competitors’ claims “too speculative to confer … standing” and said the clients “failed to plead actual, concrete injury sufficient to survive dismissal.”