Fresh claims emerge in Cattles legal action

Yorkshire subprime lender Cattles has officially filed papers with the High Court in London against its former auditor PwC over failing to spot danger signs in its accounts.

A spokesperson for the company confirmed the High Court action occurred late last week, shedding new light on the £1.6bn damages claim against PwC.

It also follows two recent disciplinary hearings where former finance directors of the company Peter Miller and James Corr were banned from the ICAEW and ICAS respectively.

The long-running accountancy scandal surfaced in early 2009 after warnings from a whistle-blower, but Cattles has argued that PwC should have raised the alarm at least two years earlier.

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Comments
George Gretton's picture

Fecking hell, Father Jack here we go again......

George Gretton | | Permalink

It's so difficult to see through all of this. As banged on about before; it's the Cattles Shareholders and Management that are totally and fundamentally responsible for what went wrong. It's the Cattles FD, now banned, that signed the accounts; they were HIS responsibilty.

But how it all wonderfully discredits the overall blanket illusion of what Audit is. I was just corresponding with an American correspondant about The Enron and Arthur Andersen Scandals, which were both terminal.

However the reference to the Cattles Audit Committee is interesting; if the relationship was purely between the Cattles Audit Committee and PWC, then PWC completely lost the plot, and a miss is as good as a mile. But the relationship was more complex, probably revolving around the FD.

What a cock up. Now the shareholders are trying to recover their money by fair or foul means, but they are just shifting the blame. They risked their capital, failed to manage the management, and got burned. No cries of "muummmmmmmy", please.