BDO Seidman To Pay $170M For Overlooked Fraud

Law360, New York (August 14, 2007, 12:00 AM EDT) -- A Florida jury has ruled that accounting firm BDO Seidman LLP must pay $170 million in damages for its gross negligence in failing to spot a fraud that forced a Miami financial services company into bankruptcy.

The jury handed down the award Monday in a state court and returned to court Tuesday to determine the extent of punitive damages owing Banco Espirito Santo. Under Florida law, the jury can award punitive damages up to three times the amount of compensatory damages.

The jury had earlier found...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.