Auditor pays out over finance firm lawsuit
Accountancy firm BDO Spicers has agreed to pay $18.5 million to settle a legal claim over its audit of failed lender Capital + Merchant Finance.
The money will be the first amount recovered for retail investors owed $167m since the finance company collapsed in 2007.
BDO's settlement follows its agreement earlier this month to pay an undisclosed share of $22m to settle claims relating to the failure of Strategic Finance.
In a statement issued today liquidator Les Currie, Official Assignee, said the deal was a significant milestone.
"It was achieved after rigorous negotiations and consultation. My team of insolvency personnel, experts and legal counsel have all worked diligently to ensure the best possible outcome for the company and its investors," he said.
The agreement represents a full and final settlement of all claims by the liquidator against BDO Spicers over its audits of Capital + Merchant's financial statements for the years to March 2006 and March 2007.
The settlement includes no admission of liability by BDO Spicers.