PracticeConsultingDate set for Coopers JDS challenge

Date set for Coopers JDS challenge

A date has been set for the appeal by Coopers & Lybrand against the findings of the accountancy profession's senior watchdog over its role in the collapse of Barings.

Now part of PricewaterhouseCoopers, the firm and two of its partners will on 10 September challenge the findings of an accountants’ Joint Disciplinary Tribunal over their roles as auditors of the merchant bank, brought down by the activities of rogue trader Nick Leeson.

If the appeal is dismissed, the firm could face a fine and the partners – Gareth Davies and Andrew Turner – face the possibility of sanctions such as a ban from the profession.

The case was first heard by the tribunal last year, but Coopers appealed its findings, details of which were never revealed.

However, the appeal hearing, expected to last around ten days, could be only the precursor to a much more protracted court case following the failure of settlement talks this week between Coopers and Barings’ liquidators at Ernst & Young.

An ‘agreement in principle’, rumoured to be worth up to Pounds 150m, was reached between the two last month.

However, the collapse of the negotiations means that E&Y is set to go ahead and sue Coopers and fellow auditor Deloitte & Touche Singapore on behalf of Barings creditors for Pounds 1bn for negligence.

Due to start in October, experts say it could be the most expensive case in legal history, although further attempts at a settlement have not been ruled out.

The failure of this week’s talks are thought to be due to increased demands by some Barings creditors.

A PwC spokesman said: ‘The collapse of talks is a matter of regret but we remain ready for trial now.’

Liquidator Alan Bloom, head of corporate restructuring at E&Y, told Accountancy Age: ‘Important issues arose that those parties involved in settlement were unable to resolve.’

Links

Coopers’ Barings settlement collapses

Pounds 1bn Barings court battle may be averted

Barings claim shrinks to Pounds 200m

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer