US firm pays out as part of $300m (£155m) settlement of a class action lawsuit
Accountancy Age, 11 Aug 2008
Deloitte has settled a lawsuit relating to audit client General Motors for $26m (£13m).
As part of the settlement, GM itself paid $277m. The case alleged that GM had issued a series of false and misleading statements, dating back to 2000, webCPA.com reported.
'We think this is an excellent recovery for the class in light of the current economic climate and in light of the particular difficulties the automotive industry is facing,' said James Sabella of Grant & Eisenhofer, a law firm representing the plaintiffs.
'Deloitte & Touche LLP is pleased that it has been able to resolve the securities class action brought by investors in General Motors Corporation. Although it has strong defenses to these claims, Deloitte concluded that it was in the best interests of the firm and its clients to settle this matter now rather than face the burden, expense and uncertainty of continued litigation,' reports quoted the firm saying.
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