Former KPMG Australia COO Eileen Hoggett sues firm over dismissal

Former KPMG Australia chief operating officer Eileen Hoggett has sued the accounting firm after being expelled from its partnership over her alleged involvement in a client data leak scandal, Reuters reported.

The lawsuit, lodged in the Supreme Court of New South Wales, marks the latest development in a controversy that has already triggered the departures of KPMG Australia’s chief executive, head of audit and chairman.

Lawsuit follows audit leak scandal

The scandal emerged in March after an anonymous whistleblower alleged that KPMG employees had used confidential client information to support bids for audit contracts.

Hoggett stepped down as chief operating officer in June but remained an audit partner before being expelled from the partnership weeks later.

KPMG initially said the allegations were unsubstantiated but later confirmed that employees had misused internal documents.

The controversy has since widened to include the alleged use of information from Lendlease and Optus in bids for audit work with Westpac, Dexus and Telstra.

Hoggett questions expulsion process

Appearing before a parliamentary committee in August, Hoggett said she did not recall storing Lendlease documents in her locker.

However, a May 2023 email presented during the hearing showed she had authorised a colleague to access documents stored there to assist with a bid.

Hoggett said she did not understand why KPMG took what she described as the "unprecedented" step of expelling her from the partnership.

"I received a call from ​the CEO, who advised that I was being expelled," she ​said.

"There was ⁠no opportunity to be heard or to have any discussion bar the conversation that I had with the CEO."

Dispute over partner entitlements

Hoggett said she is seeking an explanation from KPMG regarding the basis for her expulsion and her rights as a partner.

She also told lawmakers that her removal resulted in the loss of accrued annual leave and a retirement payment.

The NSW Supreme Court confirmed that a summons had been lodged. KPMG did not immediately respond to a request for comment.