Auditor pays out over finance firm lawsuit

Last updated 16:47 26/06/2014

Relevant offers

Industries

Trade Me to help address youth unemployment in Auckland Cos Bruyn leaves Downer for Fulton Hogan New broadband plan drives down cost of data Construction starts on Auckland's next luxury apartment complex Amazon angers India with Gandhi jandals and flag doormat Hellaby concedes in takeover battle Stronger competition for workers could push up pay, forecasts ASB Completion of trans-Tasman cable delayed until March after mishap UK shopper labelled 'lazy', 'dirty' for wearing dressing gown to supermarket Experts express concerns about aerosol spray sunscreens after string of incidents

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.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content