PracticeConsulting$6bn lawsuit brought against Andersen

$6bn lawsuit brought against Andersen

Minnesota-based company Department 56 has filed a $6bn lawsuit against Arthur Andersen Worldwide Société Cooperative in a district court in Maryland, in connection with work on the company's computer systems.

Andersen advised Department 56, a manufacturer of rather interesting looking collectibles, on a complete refurbishment of its computer system. The company alleges the worldwide operating system did not work properly and that it was misled over the costs of the system.

Andersen previously filed a lawsuit against Department 56 in Minnesota five months ago for $600,000 worth of unpaid bills. A spokesperson said Department 56’s action was nothing more than retaliation to the accountancy firm’s suit.

As far as Andersen is concerned, its team was ‘fully qualified to perform the work and did so in a professional manner’.

Litigation firm Snyder, Weiner, Weltchek, Jacobs, Slutkin & Lodowski, which obtained a $185m settlement from Ernst & Young on behalf of US retailer Merry-Go-Round Enterprises, is acting on behalf of Department 56.

  • A class action suit has been brought against Department 56 in a Minnesota district court by a group of shareholders. The plaintiffs are seeking damages because, according to the action, they were not told that the ‘new enterprise-wide computer system was a complete failure, resulting in massive problems with every aspect of the company’s business’.

Links

Department 56 homepage

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