Recently, I was stalled by the Whole Foods cash register operator, who first asked me whether I have cold and hot deli in one box. As I said yes, he said, I will have to charge you tax on the whole purchase, because we’ve recently been audited and auditors found that we owe large on improper deli taxation.
Vitesse Semiconductor Corp. announced Monday that it will receive $22.5 million from its former auditor, KPMG L.L.P., to settle a claim alleging negligent auditing practices linked to a stock options backdating lawsuit.
Camarillo, Calif.-based Vitesse said it sued KPMG in June 2007 alleging negligence occurring during several years in the auditing of stock option grants. Investors in 2006 filed a class action securities lawsuit against Vitesse alleging stock option backdating and accounting manipulations.
The case eventually settled for $10.2 million, with $8.75 million paid by Vitesse’s directors and officers liability insurers.
A spokesman for KPMG declined to say whether it is insured for its settlement with Vitesse.