Jeremy Newman has warned that the battle may not be over for BDO
International, after a landmark decision ruled it out of being partly liable for
a $521m (£321m) negligence case hanging over US network member BDO Seidman .
The BDO network chief executive said he was ‘relieved’ the US courts agreed
International did not control Seidman, but Newman warned those lodging claims
would not be deterred easily.
Newman said he had always been confident that BDO International’s arms-length
approach would be proved but added: ‘There is still the risk of a further
appeal, as well as the appeal by the US firm.’
BDO International was cleared last week at the Circuit Court of Florida, but
cases still hang over other networks including Deloitte, KPMG and Grant
BDO Seidman is still appealing against damages amounting to $521m for its
audit of factoring company Bankest, owned by Banco Espirito Santo.
One senior figure said the decision would give firms a boost. ‘There will be
differences in structure between every network, but the belief is, the way the
other firms are arranged gives them an even better defence against similar
Banco’s lawyers said no decision had been made on an appeal.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016