Deloitte settles record Canadian lawsuit

firm has agreed to $50.5m (?25m) to settle an investor lawsuit over
its audit work at Canadian waste management and scrap-metal firm
Philip Services.

According to Reuters, the settlement was approved in US district court in
Manhattan, and is the largest sum ever paid by a Canadian auditing firm in a
securities class action lawsuit.

‘We entered into the settlement without acknowledging any wrongdoing, and
solely to eliminate the uncertainties, the burdens and the expense of further
protracted litigation,’ a Deloitte spokeswoman said on Friday.

Ontario-based Philip Services declared bankruptcy in 1999 after saying it
would restate financial results for three years over rogue copper trading.

Investors sued the company and Deloitte, claiming Deloitte had not disclosed
that Philip Services’ financial statements did not comply with US and Canadian
accounting principles.

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