Grant Thornton ends landmark Assetco legal battle with a bill of £29m
Accountancy firm Grant Thornton has ended a long-running legal battle over its failure to expose a fraud at a former client, AssetCo, leaving it facing a bill of £28.6 million.
On Friday, the firm told fire-engine leasing service AssetCo, that it would not pursue a further appeal.
Last August, the Court of Appeal ruled against Grant Thornton’s plea to throw out the judgment, but reduced the damages to be paid.
A judgment said “flagrant breaches of duty” by auditors signified dishonesty by some senior executives at AIM-listed AssetCo, went undetected.
The case marks the first time a court has allowed a company to sue its auditor for losses made after a weak audit, The Times reports.
Grant Thornton said: “Following our recent partially successful appeal, we have decided not to pursue a further appeal.”