Andersen faces more legal action
Andersen, the embattled Big Five firm facing legal action over its audit of failed energy giant Enron, has been hit with another lawsuit in the US.
According to reports, the firm is being blamed for failing to notice a $4m hole in the accounts of Styling Technology, a Californian beauty products manufacturer.
The company collapsed in 2000 with debts of more than $182m after admitting that its accounts were inaccurate.
The action is being brought by angry investors, who allege Andersen helped Styling to compile the inaccurate accounts and ignored signs that it was in trouble.
Andersen has dismissed the allegations, calling them ‘irresponsible’.