Sure, there are settlements here and there but not the big KA-CHING! investors are looking for.
Lawsuits have been dismissed against Deloitte & Touche over its audits of mortgage financier Fannie Mae, as well as a case against PricewaterhouseCoopers accusing it of helping hide risks at insurer American International Group. KPMG settled a lawsuit stemming from its audits of mortgage lender Countrywide Financial Corp, now part of Bank of America, for a relatively modest amount. “Every time somebody comes up with a new fraudulent scheme, auditors miss it,” said Andrea Kim, a partner at law firm Diamond McCarthy LLP in Houston who represents plaintiffs in auditor lawsuits. “The historical pattern is that they find a way to manage the litigation to limit their liability.”
Analysis: Big wins elude investors in auditor lawsuits [Reuters]
