From Business Insurance
NEW YORK - Coopers & Lybrand L.L.P. will pay $68 million to settle litigation against the accounting firm relating to the improper transfer of shares from one company to another by deceased media mogul Robert Maxwell.
The settlement will increase the projected payout to creditors of Maxwell Communication Corp. PLC to between 46% and 51% instead of 44% and 48% which was previously projected. Mr. Maxwell took (pounds)450 million ($698 million) from his employees' pension funds.
The litigation arose out of C&L's audit of the 1991 accounts of Macmillan Inc., a former subsidiary of MCC, according to a statement issued by Price Waterhouse, the administrators of MCC.
C&L failed to report the removal of shares in Berlitz International Inc. from Macmillan to other companies controlled by Mr. Maxwell. The shares allegedly were used by Mr. Maxwell to obtain (pounds)110 million ($170.3 million) in loans; the money was used to prop up his ailing media empire.
A C&L spokesman would not comment on insurance issues.