Auditor pays out over finance firm lawsuit

Last updated 16:47 26/06/2014

Relevant offers

Industries

Veda data shows homeowners putting retail spending on the house OIO faces 'independent review' following Onetai farm sale ANZ boss David Hisco's warning: 'I wouldn't speculate in this market' Analyst puzzled by suggestion 2degrees could float in Australia valued at $800m Global Threat Intelligence report ahead of Government Cyber Security Summit McDonald's all-day breakfast trial a success FMA warns Craigs Investment Partners over breach of anti-money laundering rules Tegel shares rise on first day on NZX Green MP's plan to make Kaikoura an organic dairy hub using Fonterra factory Panama Papers: Onetai farm sale goes feral, puts OIO in the spotlight

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