Shareholders in failed mining company CuDeco have accused accounting giant KPMG of misleading and deceiving the market in its audits of the collapsed outfit, adding to the slew of investor class actions faced by professional services firms.

In a statement of claim filed with the Federal Court, the disgruntled investors claim KPMG failed to act with due care and skill, making representations about CuDeco’s financial reports that were “materially misleading” and “not based upon reasonable grounds”.