PracticeAccounting FirmsDeloitte in the clear as Barings case ends

Deloitte in the clear as Barings case ends

An appeal in the long running and massively expensive legal battle between Barings liquidators KPMG, and former Barings auditors, Deloitte, over the level of damages Deloitte should pay in the wake of the 1995 Barings collapse, was formally dismissed in London today.

Link: Barings: Deloitte acted negligently

The appeal was called off at the 11th hour last week just as it was due to begin when lawyers announced a behind the scenes settlement had been reached, but that matters still needed to be formalised.

This morning Lords Justices Peter Gibson, Rix and Longmore formally dismissed the appeal at the request of all parties and made no orders in respect of legal costs.

The court was told by Michael Brindle QC for KPMG, that the agreement, terms of which have since last week been approved by both the UK and Singapore High Courts is subject to a confidentiality clause and as a result details have not been given of it.

Had the appeal proceeded it would have centred on a High Court finding that it was the former directors of Barings, rather than Deloitte, who were primarily to blame for failure to spot the activities of rogue trader, Nick Leeson.

In the High Court Mr Justice Evans-Lombe held that Deloitte was liable for a mere pounds sterling £1.5m of the losses suffered by Barings, as opposed to the pounds £130m which had been claimed.

Barings collapsed with debts of £771m in 1995 as a result of the trading activities of Leeson, who was general manager of Barings Futures in Singapore. The bank was Britain’s oldest merchant bank.

Initially KPMG sued both Deloitte and PricewaterhouseCoopers, claiming £1bn. They alleged that the auditors were to blame for what happened. PwC settled the claim against them for £65m.

The case was one of the most expensive in modern legal history. It ran for some ten months and notched up legal fees said to be in the region of £5m.

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

3d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

4d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

3w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

3w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor