Lawyer: 'Big Six' firm now insurer; jury says outside auditors liable in Phar-Mor scam

Article Abstract:

Lawyers for Big Six accounting firm Coopers & Lybrand fear a PA federal jury's guilty verdict for civil fraud could turn outside auditors into 'insurance' against criminal mgmt. C&L failed to expose a $3 billion investment scam run by the senior mgmt of Phar-Mor, a pharmacy chain that recently emerged from bankruptcy. The auditors knew of irregularities in the accounting practices Phar-Mor used, but never forced a confrontation over the issue, instead aggressively seeking to cross-market more services.

Accountants, Malpractice, Phar-Mor Inc.

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Big-Six deals test Justice on antitrust; law affecting partnerships, services, market size unclear

Article Abstract:

Antitrust regulators are evaluating the proposed mergers of KPMG Peat Marwick L.L.P. with Ernst and Young L.L.P., and Coopers and Lybrand with Price Waterhouse L.L.P. The SEC and European Union antitrust authorities are also probing the proposed mergers. Together the two merged companies would perform more than half the auditing of large corporations. Ultimately, the issue is how many firms are necessary to compete.

Evaluation, Mergers, acquisitions and divestments, Acquisitions and mergers, Accounting firms, Accounting services, Ernst & Young L.L.P., Price Waterhouse L.L.P.

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KPMG sues ex-client for interference; suits follwos finding Big 6 firm breached fiduciary duty

Article Abstract:

KPMG Peat Marwick has filed suit against the consulting firm Stern, Stewart and Co for interfering with competition after the latter hired away three employees. Stern is a former KPMG audit client and the suit also claims the defendant tried to subvert a Jan 12, 1998, KPMG conference by urging potential speakers to boycott it and that this demonstrates how far they will go to stifle competition.

Unfair competition (Commerce), Unfair competition, Stern Stewart and Co.

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