Deloitte settles Beazer lawsuit for $1m

Deloitte settles Beazer lawsuit for $1m

Big Four firm pays out after being accused of ignoring red flags in accounts

Deloitte is to pay out $950,000 (£630,000) as part of a settlement with
investors of Beazer Homes USA, after a class-action lawsuit was filed claiming
the firm failed to spot inaccuracies in the company’s accounts.

The Big Four firm had been named alongside Beazer and former Beazer
executives in a lawsuit claiming $30.5m. Investors had accused Beazer of
managing earnings, recognizing revenue earlier than allowed under US GAAP,
improperly accounting for sales/leaseback transactions, creating ‘cookie jar’
reserves, and not recording land and goodwill impairment charges at the proper
time, according to
CFO.com.

The complaint, filed nearly two years ago, said Deloitte had turned a ‘blind
eye’ to a number of red flags that should have alerted them to potential
violations of GAAP rules.

The settlement payment is pending approval from the Northern District Court
of Georgia.

Related Articles

Deloitte faces disciplinary action over Autonomy accounts scandal

Audit Deloitte faces disciplinary action over Autonomy accounts scandal

3w Alia Shoaib, Reporter
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1m Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

4m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

4m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

4m Alia Shoaib, Reporter
Shareholders bring lawsuit against Steinhoff and Deloitte

Audit Shareholders bring lawsuit against Steinhoff and Deloitte

5m Alia Shoaib, Reporter
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

9m Emma Smith, Managing Editor