Description: It has been dragging on for over 20 years. But now, a $220 million offer from Coopers and Lybrand, Chartered Accountants, has been put forward to take care of all claims resulting from the failure of Castor Holdings in 1992. Coopers Lybrand, which subsequently merged with Price Waterhouse, was the auditor of Castor Holdings, a real estate company alleged to have overstated both its loan portfolio and revenues in its financial statements.

Source: Globe and Mail.com

Date:  January 19, 2015

Link: http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/settlement-offer-tabled-in-long-running-castor-real-estate-case/article22529021/

Discussion Points:

1) Why do you think some of these lawsuits involving auditing firms take so long to resolve?

2) What are some things audit firms can do to ensure that they avoid costly litigation?

3) Does the prospect of litigation have an impact on your choice of accounting career?