Our proposed list of major
corporate settlements from around the globe is coming along nicely
thanks to some contributions out of the accounting profession:
Arthur Andersen – agreed to a US$65 million settlement in a class-action suit by investors in WorldCom Inc
KPMG – US$22.4 million settlement related to its audits of Xerox Corp from 1997 through 2000
US$50 million fine to settle US Securities and Exchange Commission
civil charges that it failed to prevent massive fraud at cable company
Adelphia Communications Corp.
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PWC – $US48 million
settlement to end class-action litigation over its audit of
Safety-Kleen Corp. Agreed to a settlement valued at US$54.5 million to
resolve its portion of a putative class-action lawsuit that accuses the
accounting firm of fraudulently overbilling its clients for
Ernst &Young – $US$84 million
to settle a lawsuit in US District Court in Boston over its audit work
for the defunct Bank of New England Corp.
Also, keep an eye on the current Equitable Life litigation in the UK.
Other Australian auditor cases going back include the following:
- KPMG and Rothwells: $16m
- Priestly & Morris and Estate Mortgage: $31m
- Deloitte and AWA: $12m
- E&Y and Duke Group: $35m
- Horwath and Horwath and National Safety Council: $4m
- PWC Fosters: unknown
- KPMG/PWC State Bank SA: unknown
- Deloitte Adsteam: $20m
Recent US mutual fund
settlements re Eliot Spitzer, including Marsh in the US – $850 million
to settle accusations of fraud and anti-competitive practices.