In a desperate attempt to fulfil City expectations during the technology gold rush, some companies may have overstated profits and hits on their websites whilst maintaining high cash burn rates, making legal fallout inevitable.
Accountants expect investigations of dotcoms to continue for the next ten years.
Steve Cohen, forensics partner at Grant Thornton, said ‘We’re just getting to the stage where people are looking around to find someone responsible.’ PKF partner Hugh Matthew-Jones added: ‘There have been some very serious losses the value of which can’t be ordinarily explained.’
He alleged that in some cases shareholders lost money through means which amounted to fraud.
Predictions indicate claims against market analysts could also increase.
Matthew-Jones said: ‘It has got to come because it was an area of outrageous valuations.’
Besides criminal cases, Cohen said shareholders could bring civil action against analysts for not doing their job properly, as many decided to buy shares or not as a result of their recommendations.
Driving opportunity for all and empowering businesses for success are the key themes for the Sage Summit UK this year, which takes place on 5-6 April
The partnership will see PwC have 'physical presence' at CodeBase in Edinburgh
Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security