Livent litigation, last act
Article originally published in the Canadian Lawyer Magazine, April 2018
Excerpt from "Livent Litigation, last act":
Given the passage of time, a brief prelude is warranted. Deloitte was Livent’s auditor during a period when, to assist with the company’s fundraising objectives, its directors manipulated Livent’s financial records to significantly overstate revenue and profit. Deloitte never uncovered the fraud, though it did identify irregularities in the reporting of profit from an asset sale. Deloitte continued to serve, assisting in the preparation of a press release that misrepresented the basis for the reporting of the profit, provided a comfort letter for a public offering and prepared a subsequent audit of Livent’s financials. The fraud was eventually discovered by new investors, Livent filed for insolvency protection and went into receivership and Livent sued Deloitte. The story divides neatly into acts, though I profoundly lack the talent to put it to music.