Andersen facing Australian legal challenge

HIH shareholders and policyholders were reported on to be considering class action law suits against Andersen, alleging the firm was negligent in its work as auditor of HIH.

The Australian-based insurer appointed KPMG as liquidators in March. The firm indicated liabilities could be as much as £1.4bn and take as long as a decade to work through. A probe has already been launched into the events surrounding the collapse of the company by the Australian Securities and Investment Commission. Three former Andersen partners worked on the board of HIH, which has raised concerns over auditor independence.

According to the FT, a Sydney-based lawyer has compiled a list of 600 retail and institutional shareholders who are ready to take part in a court action against Andersen.

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