Andersen Family Feud Heats Up to the Tune of $14B | AccountingWEB

Andersen Family Feud Heats Up to the Tune of $14B

The saga between Andersen Worldwide and Andersen Consulting continues to make the news, although negotiations are moving slower than previously expected.

This week, Andersen Worldwide filed a $14.6 billion countersuit against Andersen Consulting, maintaining its position that if Andersen Consulting wants to make the split between firms permanent, it must return the "Andersen" brand name, along with the technology it uses to run its business.

Andersen Consulting has gone on record by saying that a counterclaim has not been filed in connection with the suit.

Andersen Consulting issued a statement that says it is not contractually obligated to pay any amount based on the fact that their agreements mandate a "breakup" fee is required only if the consultants were to leave the firm. Andersen Consulting officials claim that the agreements do not refer to the circumstances surrounding establishing an autonomous presence.

Andersen Consulting officials insist that the reason for the desired split is that Arthur Andersen has a rival consulting practice that openly competes with Andersen Consulting. Additionally, a fee sharing agreement forces hundreds of millions of dollars to go to Andersen Worldwide, and some of this money is spent on funding the rival consulting operation.

An international mediator is expected to rule on the case by March of next year.

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