Moore Stephens' attempt to get Stone & Rolls' ground-breaking law suit thrown out failed because the presiding judge did not agree that Stone & Rolls case was founded upon an illegal act.
The firm said that the fraud at the company had been committed by an individual. Since the individual was the company to all intents and purposes, the claim from the company effectively meant founding a claim on an illegal act.
Mr Justice Langley believed that the case had merit because it was being brought by the liquidators Benedict Mackenzie on behalf of the injured creditors of S&R, however.
The case centres on the fact that Stone & Rolls boss Zvonko Stojevic had colluded with Austrian company BCL to create fake commodity sales, allowed S &R to draw $90m (£46m) funds from Komercni Banka, a Czech banking institution.
These funds were passed through S&R's accounts on their way to BCL and the claimants believe that this should have been discovered by its auditors.
S&R acccused partners David Anstis and Chris Chasty of being negligent in their audits of Stone & Rolls between 1996 and 1998. The fraud eventually led to S&R going into liquidation after it was forced to pay out $94.5m to KB in 2002.
In the judge's opinion the claim, which comprised of 399 paragraphs, 3 schedules and 4 annexes, was 'daunting' but he believed that the prosecution had done enough to convince him that the case should go ahead.
Court papers show that the compound interest claim that Moore Stephens managed to have struck out amounted to $80m.
The case is ground-breaking because it uses litigation funding, being funded by a third party, IM Litigation Funding.
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