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.

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