Manhattan Supreme Court Justice Eileen Bransten (See Profile) has dismissed a lawsuit for more than $1 billion filed by a trust for the creditors of bankrupt insurer Reliance Group Holdings Inc. against accounting firm Deloitte & Touche, ruling that the creditors had not offered enough evidence that Deloitte contributed to Reliance’s 2001 bankruptcy through improper accounting.
The June 7 order granted summary judgment to Deloitte on all the creditors’ claims, ending a seven-year lawsuit. The creditors allege that Deloitte prepared an inaccurate financial report for Reliance in 1999 that overstated the company’s financial health. They claim that, but for the inaccurate information, Reliance would have taken action to stave off bankruptcy, including exercising an option to call in payment on certain loans and selling stock in one of its subsidiaries.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
