E&Y to serve Ferox defence within days
Ernst & Young is set to outline its defence against a legal claim that it filed hedge fund Ferox’s accounts too early
Ferox is seeking compensation from the Big Four firm of more than £300,000 –
the highest damages claim that can be disclosed in a writ.
Ferox, which filed its lawsuit in December, alleges that premature filing
opened it up to overwhelming media scrutiny, according to reports. The fund has
accused E&Y of negligence and breach of contract.
The size of Ferox boss Jeremy Herrmann’s pay packet was splashed across the
media after the company’s accounts appeared before the bulk of other hedge fund
filings.
Herrmann, thought to be Ferox’s highest paid director, earned £11.4m, the
accounts said.
The legal action against E&Y is thought to be unprecedented for an audit
claim. Auditors are usually more concerned about meeting the final filing
deadline than worrying about filing too early.
Observers have been bemused by the case, and it is unclear at present what
undertaking, if any, E&Y may have made on the timing of filings.
Sources at E&Y say the firm will file papers outlining its defence at the
end of this week or the beginning of next.