PracticeAuditDeloitte to pay £81m over Adelphia collapse

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

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