E&Y in “substantial” payout to Akai liquidator

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.

Related reading

tax dictionary