Singing River Health Systems filed suit against their former auditors, KPMG, on January 16 of this year. Nearly six months later, the case has stalled. KPMG filed a motion to dismiss on March 6. Since then SRHS, through counsel Susman Godfrey, has filed four motions for time, extending the deadline for response until July 31.
Susman Godfrey, one of the heaviest of hitters in the corporate litigation world, surely has a reason. Considering they likely took this case (like most) on a contingency fee basis, there is little reason to slow litigation. Even in a contingency based case, the lawyers don’t run the show. It is possible that Singing River doesn’t want to proceed full bore until it can gain a footing in the lawsuits it is currently defending. It is likely that a strong defense from KPMG could damage SRHS’ position in the retiree cases. SRHS could have also been waiting for the Jackson County Board of Supervisors to file suit, though given the climate between the two boards, this is unlikely.
It is not uncommon for attorneys to request time for personal matters. In the instant case, Tamar Lusztig, who is handling the matter for SRHS, was recently wed and out of the country on her honeymoon. That would explain one or two extensions, but at four and counting, this case is being slow walked to first base.