Now in Legal Rebels:
Posted Sep 06, 2007 11:58 am CDT
Litigation over accounting firm Deloitte & Touche’s role in failing to detect accounting problems at Adelphia Communications is likely to continue, despite a $167.5 million settlement agreement.
Adelphia has filed a motion in a Philadelphia court to discontinue its malpractice suit accusing Deloitte of failure to detect accounting problems at the cable company, the Legal Intelligencer reports. But the fly in the ointment is the Rigas family, founders of Adelphia and defendants in a Deloitte counterclaim that contends any Deloitte failures were caused by Rigas family fraud.
The Rigas family lawyer, Larry McMichael of Dilworth Paxson, says his clients are opposing a motion to drop the case against them because they want to clear their name.
Adelphia founder John Rigas and his son, former CFO Timothy Rigas, reported to prison in mid-August, the Washington Post reported at the time. They were convicted of securities fraud for hiding Adelphia debt before the company collapsed. They are still appealing the convictions.
Deloitte has contributed $50 million to a compensation fund for victims of the company’s collapse. Adelphia pledged to give $715 million, the Wall Street Journal reports (sub. req.).