Deloitte pays $26m to settle GM suit
US firm pays out as part of $300m (£155m) settlement of a class action lawsuit
Deloitte has settled a lawsuit relating to audit client General Motors for
$26m (£13m).
As part of the settlement, GM itself paid $277m. The case alleged that GM
had issued a series of false and misleading statements, dating back to 2000,
webCPA.com
reported.
‘We think this is an excellent recovery for the class in light of the current
economic climate and in light of the particular difficulties the automotive
industry is facing,’ said James Sabella of Grant & Eisenhofer, a law firm
representing the plaintiffs.
‘Deloitte & Touche LLP is pleased that it has been able to resolve the
securities class action brought by investors in General Motors Corporation.
Although it has strong defenses to these claims, Deloitte concluded that it was
in the best interests of the firm and its clients to settle this matter now
rather than face the burden, expense and uncertainty of continued litigation,’
reports
quoted the firm saying.
Further Reading: