Posted Aug 15, 2007 02:15 pm CDT
Updated: A Miami jury has ordered BDO Seidman to pay $351 million in punitive damages for failing to uncover fraud at a financial services firm.
BDO plans an appeal.
Jurors heard testimony yesterday from BDO executives as they assessed evidence in the punitive phase of the trial. Financial statements showed BDO made a $176 million profit on revenue of $526 million last year, the Daily Business Review reports.
The Wall Street Journal (sub. req.) reports that the award against BDO “casts a shadow over its future financial viability.”
BDO CEO Jack Weisbaum testified that a punitive verdict could have big repercussions. “The company couldn’t pay punitive damages,” he testified. “We certainly wouldn’t look the way we do now.”
Originally posted 08-15-2007 at 06:34 AM.