Case risks third-party claim flood

Peter Ellingham of City lawyers Kennedys pinpointed a hike in litigation
funding claim in Australia as a telling yardstick of what the future could hold:
‘What they’re seeing in our Australian office is this method being used to fund
a lot of shareholder disputes.’

Accountancy professionals could be exposed to a glut of third-party funded
claims, if Moore Stephens loses its case, currently awaiting preliminary
judgement in the High Court.

He believed the situation was ‘certainly cause for concern’ to the whole
profession, because it was also used to bankroll directors & officers
claims, many of whom are accountants.

Moore Stephens’ battle against Benedict Mackenzie, the liquidators of its
former audit client Stone & Rolls, currently rests on a knife-edge as both
sides await a strike-out judgement.

It is widely believed that the case will go to trial, putting the possibility
of a £90m bill for the mid-tier firm on the table and the rest of the
accountancy world on alert.

For more on the case go to
Moore Stephens

Related reading