PracticeAuditDeloitte 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

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

2d Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

3w Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

3w Alia Shoaib, Reporter
Deloitte scoops GSK 'mega audit' from PwC

Audit Deloitte scoops GSK 'mega audit' from PwC

9m Kevin Reed, Writer
PwC scoops Rolls-Royce audit as tender results pile up

Accounting Firms PwC scoops Rolls-Royce audit as tender results pile up

9m Stephanie Wix, Writer
Latest Big Four auditor changes

Audit Latest Big Four auditor changes

1m Alia Shoaib, Reporter
FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

4m Alia Shoaib, Reporter
Deloitte set for brickbuilder Ibstock audit

Accounting Firms Deloitte set for brickbuilder Ibstock audit

9m Stephanie Wix, Writer