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Cornerstone liquidators can sign funding pact for $46M case against PwC
Professional Negligence 2022-08-30 2:00 pm By Sam Matthews

A judge has granted the liquidators of Cornerstone Investment Australia leave to sign a funding agreement for the insolvent tertiary education provider’s $56 million professional negligence claim against accounting firm PricewaterhouseCoopers.

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Pitcher Partners gave bad advice on $2.5M Zap Fitness share buy-back: suit
Accounting 2022-08-29 11:29 pm By Cindy Cameronne

The former owner of fitness franchise Zap Fitness has sued accounting firm Pitcher Partners, claiming it failed to properly advise on a troubled share buy-back scheme that spawned litigation the company paid $4.25 million to settle.

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Arrium class action fights $8M security bid, says directors not owed costs of ‘Rolls Royce’ defence
Class Actions 2022-08-16 11:51 pm By Sam Matthews

Shareholders in a class action against Arrium and KPMG are fighting an $8 million security for costs order sought by former directors of the failed steel giant, who say they should not be forced to defend the case “on a shoestring.”

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‘Not how litigation works now’: Class action over Quintis audit fights EY’s bid to silo expert
Class Actions 2022-08-11 11:26 pm By Cindy Cameronne

A shareholder class action against Ernst & Young over its alleged inflation of assets owned by sandalwood producer Quintis has argued the accounting firm should be allowed only one expert witness, who should collaborate with a competing expert chosen by the investors.

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Ex-Fuji Xerox execs settle suit over $450M accounting scandal
Accounting 2022-08-11 11:42 pm By Cat Fredenburgh

Two former executives at Fuji Xerox’s Australian unit have settled a lawsuit over their roles in a $450 million accounting scandal that has also ensnared auditor Ernst & Young.

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‘Serious allegations’ against Pitcher Partners to be heard in NSW
Accounting 2022-08-05 10:02 pm By Cindy Cameronne

A judge has denied a bid by accounting firm Pitcher Partners to transfer a $127 million lawsuit brought by the Twigg family, saying he was best placed to hear “serious allegations” the firm helped race car driver Max Twigg give a false understanding of his company’s assets.

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EY settlement in class action over Slater & Gordon audits approved
Securities 2022-08-05 2:05 pm By Cindy Cameronne

A judge has blessed Ernst & Young’s settlement with shareholders in a class action alleging the firm, along with Pitcher Partners, approved an overly rosy year-end financial report related to Slater & Gordon’s disastrous $1.2 billion acquisition of UK business Quindell.

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Big Un auditor convicted of failing to comply with auditing standards
Accounting 2022-08-01 11:08 pm By Cat Fredenburgh

The lead auditor for Big Un’s flawed 2017 independent audit, which overstated the failed video company’s cash and cash equivalents by $8.2 million, has been convicted of failing to comply with auditing standards following an investigation by ASIC.

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Funder backing multiple cases against Deloitte can’t access docs in Noumi class action
Accounting 2022-07-25 11:35 pm By Sam Matthews

Deloitte has won its bid to keep confidential documents away from the funder backing a consolidated shareholder class against food company Noumi which alleges the auditor was complicit in misleading the market.

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PwC partners knew of unlawful dividend payment to Cornerstone director, court told
Professional Negligence 2022-07-22 9:55 pm By Cindy Cameronne

PwC partners are facing “very serious” allegations that they had actual knowledge that a $30 million dividend payment to the director of now defunct tertiary education provider Cornerstone was unlawful.

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