 Under the deferred prosecution agreement, KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government.On 3 January 2007, the criminal conspiracy charges against KPMG were dropped.<ref></ref>

In 2003, KPMG agreed to pay $125 million and $75 million to settle lawsuits stemming from the firm's audits of Rite Aid and Oxford Health Plans Inc., respectively.<ref></ref>

In 2004, KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company Lernout & Hauspie Speech Products NV.<ref></ref><ref></ref>

In 2006, Fannie Mae sued KPMG for malpractice for approving years of erroneous financial statements.<ref></ref>

In February 2007, KPMG Germany was investigated for ignoring questionable payments in the Siemens bribery case.<ref></ref> In November 2008, the Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.<ref></ref>

In March 2008, KPMG was accused of enabling "improper and imprudent practices" at New Century Financial, a failed mortgage company,<ref></ref> and KPMG agreed to pay $80 million to settle suits from Xerox shareholders over manipulated earnings reports.<ref></ref>

It was announced in December 2008 that two of Tremont Group's Rye Select funds, audited by KPMG, had $2.37 billion invested with the Madoff "Ponzi scheme.