https://www.stockwatch.com/News/Item.aspx?bid=Z-C:LVNT-2163254&symbol=LVNT®ion=C,
Globe says Livent creditors awarded $85-million
2014-04-07 06:26 ET - In the News
The Globe and Mail reports in its Monday, April 7, edition that an Ontario judge has awarded $85-million in damages to the creditors of Livent, ruling the firm's auditors at Deloitte & Touche were negligent in their reviews of the company's 1997 financial statements. The Globe's Janet McFarland writes that on Friday Ontario Superior Court Justice Arthur Gans found evidence Deloitte auditors were negligent and breached their "duty of care" to investors. In his 118-page decision Judge Gans wrote, "I am at a loss to understand how Deloitte could have signed a clean audit opinion for 1997." He said Deloitte auditors "seemed to turn a blind eye to the warning signs" about a controversial transaction in 1997 to sell air rights to develop a condominium-hotel above Livent's Pantages Theatre in Toronto, and also said the auditors' work on another controversial decision in 1998 to record $27.5-million of writedowns "left me breathless." Mr. Gans said, "I shudder to think it was all about the $50,000 fee they received for the review engagement undertaken as a precursor to the October [1997] underwriting or the $95,000 fee charged in respect of the 1997 audit." Deloitte had no comment on the ruling Sunday.
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Justice Gans thinks one year of automatic audit is worth $85 million, be nice to put the HBM - CAA case in front of Mr. Gans. Twenty two years of Automatic Audit has to be worth 22 x $85 million = $1,870,000,000.00.
Good luck,bt