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’.
Carter Backer Winter has acquired Edwards Financial Services, expanding its financial planning department
New growth opportunities in Aberdeen, North East Scotland, are being invested in by Grant Thornton
Colin responds to the call for 'Darwinism' in accountancy
A new partner, Dermot Callinan, has joined Saffery Champness from KPMG where he was recently the head of the UK private client advisory team