Grant Thornton, Ernst & Young and PwC along with global investment banks Credit Suisse Securities (USA), Bank of America and Deutsche Bank Securities and Chicago law firm Mayer, Brown, Rowe & Maw, have all been named in a $2bn (£1bn) lawsuit brought by the bankruptcy trustee of failed stockbroker Refco.
The trustee is suing for damages for the firms' alleged role in 'looting' Refco.
The decision to sue the three accounting firms as well as the law firm signals, according to a report in the FT, a trend by aggrieved parties in securities fraud cases to increasingly target professional advisers.
The decision to sue came a month after an independent examiner into Refco appointed by a New York bankruptcy court said Refco's creditors had viable legal claims against the firm's lawyers and accountants.
Further reading:
Comments