PracticeConsultingBig Six – Coopers faces Resort Hotels writs

Big Six - Coopers faces Resort Hotels writs

Coopers & Lybrand was hit by a series of writs this week from angry investors in Resort Hotels, over its role as auditor and reporting accountant of the failed hotels group.

Two groups of former shareholders set out claims for damages, which are set to top #10m, following a #20.6m fraudulent rights issue in 1992.

The move adds to Coopers’ embarrassment after the Joint Disciplinary Scheme confirmed it would be prosecuting four of the firm’s partners for their role as auditors of Robert Maxwell’s empire.

Solicitor Leon Kaye, of Leon Kaye Collin & Gittens, said he was acting for over 200 people in the case.

‘We issued our first writ last July and there have been several more writs and court appearances since then. But we now expect some movement over the next couple of weeks,’ he said.

Solicitor Edwin Coe is acting for nearly 500 private and institutional investors, including Fleming Mercantile Investment Trust, Invesco Enterprise Trust and the Leukaemia Research Fund.

Coopers said it would defend vigorously all writs served.

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