Andersen Set For Another Trial

Embattled auditor Arthur Andersen now faces trouble in court on two fronts. Jury selection is now underway for a trial in which the firm is defendent and which is completely unrelated to the Enron scandal.

The firm is charged with failing to detect a fraud perpetrated by the Baptist Foundation of Arizona (BFA), one of its audit clients. BFA filed for Chapter 11 bankruptcy protection in 1999 and investors lost £365m.

Andersen stands accused of not recognising that the Foundation was a scam designed to obtain money from mainly elderly people.

The firm agreed to pay $217m in settlement several weeks ago, but Andersen's insurance company refused to pay up.

Investors are now suing Andersen for negligence and hope that the court will find the auditor culpable for its actions.

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts