Deloitte to pay £81m over Adelphia collapse
Massive settlement to be paid by former auditor
Deloitte has agreed to pay $167.5m (£81m) to its former audit client,
Adelphia, one of the biggest
settlements ever paid by an auditor to its former client.
The money will be paid into the
Adelphia
Recovery Trust – the statutory trust formed following the
Chapter 11 Plan of
reorganization of Adelphia.
Under the terms of the settlement, Deloitte will transfer the settlement into
an interest-bearing escrow account for the benefit of the Trust pending approval
of the settlement by US bankruptcy Judge Robert E. Gerber.
The Trust stated through a spokesperson: ‘We are pleased with the settlement,
which is among the largest settlements ever reached between a public accounting
firm and its audit client.
‘This settlement does not resolve the Trust’s claims against Adelphia’s
former
lenders and others who took part in a massive financial fraud perpetrated
against Adelphia, and the Trust will continue to prosecute those claims
vigorously to conclusion,’ a Trust spokesperson said.
Further reading:
Adelphia compensation role for ex-SEC chairman
Enron, Adelphia miss SEC deadline
Deloitte faces SEC inquiry over Adelphia