PracticeAccounting FirmsDeloitte agrees to pay ?19m to Delphi Corp

Deloitte agrees to pay ?19m to Delphi Corp

Deloitte has ageed to pay $US38.25m of Delphi Corp investor claims

Deloitte
& Touche
has agreed to pay $US38.25m (?19m) out of a $325m settlement of
investor claims for misconduct by Delphi Corp, USA’s biggest auto parts
supplier, and those looking after its finances.

Delphi filed for bankruptcy protection
in 2005, admitting hundreds of millions of dollars in earnings since were
invalid. Deloitte & Touche, now part of the privately owned Deloitte Touche
Tohmatsu, served as Delphi’s outside accountant.

An investigation by USA’s Securities and Exchange Commission found Delphi
manipulated its earnings from 2000 to 2004, using several illegal schemes to
boost its earnings, including the concealment of a $US237m transaction in 2000
with GM involving warranty costs.

The agreement announced Thursday requires approval by a US federal judge and
is part of a $US325m settlement of investor claims over the accounting issue.
Delphi agreed to pay about $US205m and Delphi’s insurers and banks paid the
remainder.

Further reading:

Delphi deal paves way for end to bankruptcy

Read
story in the International Herald Tribune

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