PracticeAccounting FirmsDeloitte and Bear Stearns face $1bn law suit

Deloitte and Bear Stearns face $1bn law suit

The liquidators of two Bear Stearns mortgage hedge funds has filed a $1bn law suit against the bank and its auditor Deloitte

Liquidators of two Bear Stearns mortgage hedge funds, which collapsed last
year, filed a suit on Monday against the bank and its auditor, Deloitte &
Touche, in an attempt to recover more than $1bn (£0.5bn) in losses.

The suit, filed in US District Court in Manhattan by Geoffrey Varga and
William Cleghorn, claims Bear, the managers of the hedge fund, and Deloitte
failed to living up to assurances that the funds were relatively safe and
conservative investment vehicles,
Reuters
reports.

The liquidators claim Bear Stearns and its hedge fund managers ‘conceived,
marketed and managed hedge funds that they knew would be viable so long as – but
only so long as – the US housing market continued to rise’.

The suit – which also seeks punitive damages – accuses the company, the fund
managers, and Deloitte of violating their fiduciary and professional duties,
claiming Deloitte’s preparation of the funds’ audits was ‘at a minimum
negligent.’

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

2d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin