Deloitte & Touche to be Questioned in DVI Bankruptcy Case
According to the Wall Street Journal, the firm opposed the examination of their records because others suing the firm could take advantage of the information uncovered in the probe.
A court-appointed examiner in April found that DVI became “addicted” to the steady cash flow of securitizations and manipulated them, leading to the company's collapse. The examiner also suggested that Deloitte & Touche may be at least partly to blame for years of accounting irregularities.
In addition to documents related to audits and Securities and Exchange Commission filings, DVI's unsecured creditors want information on the solvency of one of DVI's major securitizations.
Deloitte & Touche is named as a defendant in three other lawsuits related to the DVI bankruptcy. The firm has therefore asked for protection against use of information from the bankruptcy probe in other lawsuits.
However, U.S. Bankruptcy Judge Mary Walrath said she would sign off on a probe of Deloitte & Touche, and permit other parties to the bankruptcy to see documents and sit in on depositions, the Journal reported.