PracticeAccounting FirmsErnst & Young faces investors lawsuit

Ernst & Young faces investors lawsuit

Big Four accountancy firm, Ernst & Young, is being sued by several large international investors because it allegedly failed to alert them to the unauthorised activities of Sloane Robinson Investment Ltd.

Link E&Y faces lawsuit over failed client

According to a story published in the Bermuda Sun, qualified investors from New York, the Isle of Man and Bermuda sank over $27m into the SR Global International Fund LP.

But in a suit filed by Anglo American Security Fund, Sterling Grace Capital Management, and the Lorraine and Oliver Grace Trusts the group claims that E&Y failed to inform them in good time that SR had secretly withdrawn nearly all the funds.

The lack of action resulted in investors lacking the information needed to make a decision on whether or not to withdraw funds in the account.

An E&Y spokesman told the paper that the firm had not yet seen the lawsuit, but that ‘we believe the case has no merit and we will defend ourselves accordingly’.

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