KPMG LLP of New York last week saved itself and the accounting industry from the potential of a court case that could have expanded the liability of accountants who audit mutual funds.

KPMG agreed to pay $13.9 million to approximately 8,000 investors who suffered losses as a result of their investment in the Piper Institutional Government Income Fund from 1991 to 1994, according to filings made March 13 in U.S. District Court in St. Paul, Minn. The court must approve the settlement.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.