Big Four plead for protection from lawsuits
Big four fear a surge in lawsuits
Representatives from the Big Four firms will meet the Government this week to
discuss how they might respond to a surge in litigation from bruised investors
who have suffered losses in big company failures, The Times reported.
Class action lawsuits, if successful, have the potential to cause serious
upheaval for both the audit market and the wider business community. All but two
firms listed on the FTSE 100 have a big four auditor.
Talks between the big four and the Department of Business, Enterprise and
Regulatory Reform (BERR) are set to begin this week. Lobbying efforts are being
led on the firms’ behalf by the Institute of Chartered Accountants in England
and Wales, the newspaper said.
Under current laws, auditors can suffer the entire liability for a corporate
collapse even if they are found to be only partly to blame.
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