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$521 million damage award against BDO Seidman



The lawsuit alleged that negligent audits by the accounting firm made it possible for principals of a Florida factoring firm to defraud Banco Espiritu Santo ("Holy Ghost Bank", at a guess), Portugal's third largest. Are accounting firms really capitalized in such a way as to withstand this kind of financial hit? The firm's total revenue (not profit) last year was $526 million, according to one report.

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Bridget Carroll
Press Officer,
Manhattan Institute
bcarroll@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.