NEW YORK — Adelphia Communications Corp. on Wednesday filed charges against Deloitte & Touche, accusing its former auditor of negligence and fraud for failing to stop Adelphia’s co-founder and former chief executive, John Rigas, and two of his sons, also former Adelphia executives, from shifting funds from the company to their accounts.
“This is an action against Deloitte for professional negligence, breach of contract, fraud and other wrongful conduct arising out of Deloitte’s role in one of the most egregious instances of corporate self-dealing and financial chicanery in United States corporate history,” according to the suit filed in Court of Common Pleas in Philadelphia.
Rigas and his sons have been indicted on criminal fraud charges.
(via Reuters)
Comments on this entry are closed.