Since BDO International Global Coordination was able to dodge the bullet in the Banco Espirito case, litigation against the Big 4 has been pretty quiet. Oh sure, you could bring up Schein v. E&Y but the money at stake isn’t that big and Schein is claiming Oliver Stone-type conspiracy theory so we’re hesitant to get too worked up about it.
However, if you’re craving bean counter courtroom drama it won’t be long until you’re up to your ass in Jack McCoy-types screaming about how crooked accountants are.
According to research firm, Audit Analytics, there are eight firms at risk for potential lawsuits related to King Ponzi alone along with six other potential lawsuits related to the financial clusterfuck.
Audit Analytics also was kind enough to pull together some data on who’s winning the race to pay out the most settlement. The top 50 malpractice suits against the Big 4 since 1999 break down like this, per Compliance Week:
1. E&Y – $1.92 billion
2. KPMG – $1.42 billion
3. PwC – $1.27 billion
4. Deloitte – $1.24 billion
Don’t expect the trend of the firms handing over asstons of cash to end anytime soon as settling these cases out of court seems to be best way for the firms to extend their seemingly shortening lives.
Tag: Lawsuits
Review Comments | 07.20.09
• Lawyer: Ernst auditing helped sink Hinsdale’s Superior Bank – Plaintiff Alan Schein is still claiming conspiracy on E&Y’s part. [Daily Herald]
• Securities Lawsuits Plummet in 2009 – Because they’ve all been filed already [CFO.com]
• Stanford case spreads its tendrils – For a Ponz that simply offered CD’s with out of this world interest rates, the international law and jurisdictional aspects will turn your head in knots. [FT.com]
• TD Ameritrade Settles Securities Case – “TD Ameritrade Inc. agreed to buy back $456 million of auction-rate securities from its clients as part of a settlement with New York Attorney General Andrew Cuomo, the Securities and Exchange Commission and Pennsylvania securities regulators.” [WSJ]
You Know That Guy Who Panhandles on Your Block? He May Be a CPA.
Anybody out there looking to help their fellow CPA, who’s down on his luck?
The Wall St. Journal is reporting that the former BDO Seidman LLP CEO, Denis Field may have to pay back a portion of $180 million that is being sought by prosecutors in the tax shelter case that involves Field and six others.
Natch, everybody has denied wrongdoing. The charges include conspiracy and tax evasion. Good luck with that.
Prosecutors Seek Ex-BDO Seidman CEO, 6 Others To Forfeit $180M [WSJ]
Jeremy Newman Just Wants to Be Clear, We are NOT Declaring Victory Over Banco Espirito…YET
After throwing an all night rager last week when BDO International Global Coordination skated on the $521M verdict, Jeremy Newman, BDO Boss, wants everybody to chill.
Newman said he had always been confident that BDO International’s arms-length approach would be proved but added: ‘There is still the risk of a further appeal, as well as the appeal by the US firm.’
See? Staying cool. Not out of the woods yet. But when we beat those bastards on appeal, then we are getting down.
Newman stays cool after BDO victory [Accountancy Age]