Deloitte Sued in Ahold Matter | AccountingWEB

Deloitte Sued in Ahold Matter

The New York law firm of Wolf Haldenstein Adler Freeman & Herz has filed a lawsuit against Deloitte Touche Tohmatsu claiming that the Big Four firm violated federal securities laws by aiding in the issuance of false and misleading financial statements for Dutch consumer giant, Royal Ahold, the world's third largest retailer. Deloitte is the auditor for Royal Ahold.

Ahold announced last week that financial statements for 2000 and 2001 contained accounting irregularities that may amount to as much as $500 million. The irregularities, which were discovered in the company's U.S. division, stem from local managers booking higher promotional allowances, provided by suppliers to promote their goods, than they actually received in payment.

The Wolf Haldenstein lawsuit is one of as many as a dozen legal cases already pending on behalf of Ahold investors. The lawyers are seeking class-action status for the case.

Dutch evening newspaper NRC Handelsblad characterized Ahold last week as now ranking "on the list featuring companies such as Enron, Arthur Andersen and Worldcom."

More information:

Giant Retailer Reeling From Accounting Scandal

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.