SYDNEY: KPMG Australia's former chief operating officer sued the accounting firm on Thursday after being sacked over her role in alleged client data leaks.

The scandal erupted in March following allegations made by an anonymous whistleblower that KPMG misused confidential client information to bid for audit contracts.

Eileen Hoggett, who the whistleblower said stashed client board papers in her locker in KPMG's Sydney office, stepped down from her role as chief operating officer in early June while staying on as an audit partner.

She was expelled from the partnership weeks later.

The Supreme Court of New South Wales confirmed Hoggett's lawsuit on Thursday and that a summons document had been lodged.

KPMG did not immediately respond to a request for comment.

KPMG initially said the allegations of misconduct were unsubstantiated. The firm has since confirmed that employees misused internal documents.

Its chief executive, head of audit and chairman have also resigned since the scandal came to light.

The crisis at KPMG has widened to involve the sharing of Lendlease and Optus information to bid for audit work with Westpac, Dexus and Telstra.

During a parliamentary committee hearing in August, Hoggett told lawmakers she did not recall storing Lendlease's files in her locker.

A May 2023 email presented to the committee showed Hoggett authorised a colleague ​to view the documents in her locker to help with a bid for another proposal.

Hoggett also said she did not understand why the firm took the "unprecedented" decision to expel her from the partnership, adding it was the first time it had happened in KPMG Australia's history.

"I received a call from the CEO, who advised that I was being expelled," she said.

"There was no opportunity to be heard or to have any discussion bar the conversation that I had with the CEO."

Hoggett said she had expected a different process and was seeking an explanation from KPMG about the basis for her expulsion and her rights.

Her sacking meant she did not receive her accrued annual leave or a retirement payment as a partner, she said. - Reuters