Quebec Court of Appeal upholds 2011 decision finding Coopers liable for
Castor Holdings audits
MONTREAL, July 9, 2013 /CNW Telbec/ - Creditors involved in Canada's
longest running and largest auditors' negligence case are one step
closer to seeing some of their losses repaid. Castor Holdings Ltd.
("Castor") a real estate investment company, was declared bankrupt in
1992 leaving $1.6 billion in debt. Richter was named as Trustee
representing the creditors.
The Quebec Court of Appeal has substantially upheld the April 2011
decision of the Quebec Superior Court against Castor's auditors,
Coopers & Lybrand ("Coopers"). The Superior Court found that the
audited financial statements, upon which investors relied, were
materially misleading. The Quebec Court of Appeal maintained the
liability of Coopers as a firm and on a joint basis with respect to all
of its individual Partners personally across Canada.
They have been condemned to pay millions to the estate of one investor.
Avram Fishman, a Partner with Montreal law firm, Fishman Flanz Meland
Paquin, which has represented the Plaintiff said "the findings of the
Court are also applicable and binding on all pending cases against
Coopers in the aggregate amount of well over $1 billion."
Subsequent to the legal proceedings being taken against Coopers, it
entered into a de facto merger with Pricewaterhouse, creating
PricewaterhouseCoopers (PwC). The Trustee in the Castor case has also
instituted proceedings against PwC for failing to respect certain
provisions of the Quebec Civil Code relating to "bulk sales". These
proceedings have yet to be heard, but if successful may render PwC
responsible for a significant portion of Coopers' liabilities. PwC has
already failed in its attempt to have the case transferred from Quebec
Attorney, Avram Fishman stated, "We are hopeful that this Court of
Appeal Judgment will finally result in a substantial recovery in the
very near future for the many creditors affected."
For further information:
Me Avram Fishman
Fishman Flanz Meland Paquin LLP