'Gang of four' to sue Deloitte
Deloitte is facing legal action from four partners who left it for rivals KPMG, putting a dent in the Big Four firm's proud record of partner loyalty.
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The ‘gang of four’ – Rustom Kharegat, Robert Ohrenstein, Helen Pratten, and John Oldcom – entered into a legal dispute with the firm after quitting in November 2003.
A spokesperson for Deloitte said: ‘It’s disappointing as this is the first time this kind of thing has happened here. We had more than 225 new partners join as part of the Andersen transaction, which increases the possibility of people choosing to move.’
Papers were lodged with the High Court on Tuesday. The partners want a ruling on whether they are bound by the extent of the notice period and covenants included in Deloitte’s limited liability partnership agreement made in July 2003.
KPMG confirmed the four had joined the firm, but was unable to comment on how the deal had been struck or how much they would be paid.
John Griffith-Jones, chief executive of KPMG UK, said the four people were employed as part of a strategy to increase market share. ‘They represent a very attractive team,’ he added.