4th Circ. Orders Bank's Auditor To Pay $23M For Error

Law360, New York (June 20, 2011, 2:14 PM EDT) -- The Fourth Circuit ruled Friday that Grant Thornton LLP was responsible for an erroneous clean bill of health that kept a failed West Virginia bank alive for an extra four months, ordering the auditing firm to pay over $23 million in damages.

The appeals court found that Grant Thornton's audit report to the First National Bank of Keystone in April 1999 prevented regulators from acting to shut down the bank until September 1999, allowing it to burn through another approximately $24 million that had to be...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.