New York Jury Rules Against Galatioto Sports Partners In KPMG Lawsuit

A New York jury last week ruled against sports investment bank Galatioto Sports Partners (GSP) in its $37M lawsuit against KPMG. A source said GSP plans to appeal. The New York State Supreme Court case stemmed from an audit KPMG did for the defunct Hicks Sports Group, which GSP relied on to lend to the entity. GSP alleged KPMG hid the extent of Hicks Sports' financial issues. Hicks was unable to pay back the GSP debt. Hicks Sports, which once owned the Stars, MLB Rangers and half of EPL club Liverpool, collapsed in '09 and went out of existence with the disposition of the teams in '10 and '11. GSP, which declined to comment, is a lender and adviser to teams. KPMG in a statement said it “appreciates the time and effort of the jury and its verdict recognizing that KPMG’s auditors conducted the audits of the Hicks Sports Group in an appropriate and professional manner.” If GSP appeals, the case would be filed in the New York State Supreme Court Appellant Division.