Class Action Lawsuit News

Arthur Andersen accused of negligence in class action suit. - Mar. 29, 2005

Arthur Andersen accused of negligence in class action suit. - Mar. 29, 2005: "NEW YORK (Dow Jones) - A lawyer for a group of WorldCom Inc. stockholders and bondholders said former auditor Arthur Andersen LLP was more concerned with 'lining its own pockets' than catching a massive accounting fraud at the telecommunications company.

As opening statements began in a class-action lawsuit here on Tuesday, Sean Coffey, who is representing the case's lead plaintiff New York State Common Retirement Fund, said auditors at Arthur Andersen were the only people in a position to catch the fraud and put a stop to it early.

Instead of asking tough questions of WorldCom's top executives or continuing to demand access to company records, Andersen shrugged its shoulders and acquiesced to a client that paid the firm more than $40 million in auditing and consulting fees in a three-year span, Coffey said..."
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posted by Monkeyman @ 5:55 PM