Andersen Appeal to go Before Justices in April

According to The Houston Chronicle, the United States Supreme Court announced this week it will hear arguments April 27 on whether to overturn the conviction of the Arthur Andersen accounting firm for obstruction of justice in the shredding of Enron documents.

The focus of the appeal will be on how the law was presented to the jury. A decision could come as early as June.

Last month the Supreme Court agreed to hear the appeal of the company's June 2002 obstruction of justice conviction. That was the good news.

Late in January, a federal judge in New York ruled against a motion to dismiss the class action suit brought against Andersen by WorldCom Inc. The WorldCom suit claimed that investors suing Anderson had "identified a host of audit failures," the Wall Street Journal reported in January 2005.

Andersen had served for nearly two decades as the auditor for WorldCom and its predecessor companies. After WorldCom disclosed accounting irregularities totally billions of dollars in 2002, Andersen withdrew its 2001 opinion on the company's annual report. Since emerging from bankruptcy last year, WorldCom has been known as MCI.


Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 8Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 16Kristen Rampe will give tips on how to bring confidence into the room and build a valuable network.