KPMG, PwC, Ernst & Young sued for overbilling

PricewaterhouseCoopers LLP, KPMG LLP and Ernst & Young LLP are being sued for overbilling clients for travel expenses in a Arkansas state circuit court, the Wall Street Journal reported on Wednesday.

The suit comes as the Justice Department has been investigating PricewaterhouseCoopers's billing practices, with a focus on services provided to the federal government, the Journal reported in the same story.

The lawsuit says the accounting companies billed clients for the full price of some travel expenses, while keeping rebates and discounts, the Journal said.

Privately held shopping-mall operator Warmack-Muskogee Limited Partnership, which filed the suit, also alleges that the companies colluded with each other to arrange beneficial deals with travel firms and agreed to keep the rebates secret, said the paper.

The accounting firms have denied the allegations and have filed motions to dismiss the case, the Journal reported. Representatives from the three companies were not immediately available to speak with Reuters.

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