E&Y in “substantial” payout to Akai liquidator
Liquidator Borrelli Walsh wins payout from E&Y's audit work at Akai
Ernst & Young has been forced to pay out to the liquidator of former
client Akai Holdings, after admitting documents it was using as evidence in its
$1bn (£625m) lawsuit could not be relied upon.
The settlement with Hong Kong-based liquidator Borrelli Walsh comes after a
five-year legal battle at the Hong Kong High Court, in which E&Y were
initially accused of negligence, reported City AM.
The trial came to a head when Borrelli accused E&Y of falsifying more
than 80 documents stretching back over the decade in which the firm served
Akai’s auditor.
E&Y denied document falsification and allegations it had breached audit
obligations, but admitted certain documents were no longer reliable. The partner
who served as audit manager for Akai has been suspended.