Lendy auditor caused £15m loss to investors - court told

Mousey
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Lendy auditor caused £15m loss to investors - court told Jul 15, 2024 14:34:49 GMT duck, captainconfident, and 11 more like this

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Post by Mousey on Jul 15, 2024 14:34:49 GMT

Professional auditing firm Moore Stephens acted "negligently" and with a lack of "professional scepticism" when they signed off the accounts of the now failed peer-to-peer lending firm Lendy, documents filed at the High Court claim.

All losses stemming from £27m of investments since 1st March 2018 could be made good if claim successful.

The court documents allege that had Moore Stephens "not acted negligently and in breach of contract" then the FCA "would rapidly have taken enforcement action against Lendy, forcing it to stop accepting any further funds from investors or facilitating any new loans within a very short period of time".

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duck
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Lendy auditor caused £15m loss to investors - court told Jul 15, 2024 16:59:34 GMT min, micky, and 4 more like this

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Post by duck on Jul 15, 2024 16:59:34 GMT

Good report Mousey

Had to laugh at the bit about the FCA acting quickly!

It’s said the firm Moore Stephens, now known as MSR Partners LLP since their merger with BDO LLP ......

How reassuring for Col investors.

gaza77

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Lendy auditor caused £15m loss to investors - court told Jul 15, 2024 17:35:39 GMT min, micky, and 2 more like this

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Post by gaza77 on Jul 15, 2024 17:35:39 GMT

Gosh! I wish I was knowledgeable enough to understand the implications of this!
1. Who is paying for these litigation costs?
2. Is there any chance we ‘might’ get some money back from this if we win the case? (Not too hopeful).

Above all; Thank you Mousey (again)!

ilmoro
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Lendy auditor caused £15m loss to investors - court told Jul 15, 2024 17:43:00 GMT min, micky, and 6 more like this

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Post by ilmoro on Jul 15, 2024 17:43:00 GMT

Jul 15, 2024 17:35:39 GMT gaza77 said:

Gosh! I wish I was knowledgeable enough to understand the implications of this!
1. Who is paying for these litigation costs?
2. Is there any chance we ‘might’ get some money back from this if we win the case? (Not too hopeful).

Above all; Thank you Mousey (again)!

1. The claims company to whom the claim has been assigned ... they will deduct these and a probably % from any successful recovery
2, In theory yes, but that will depend on the terms of the assignment of the claim and to whom the proceeds are properly payable. If its to loan holders then it will depend on which loans 'qualify' under the claim ie possibly only those advance post 1/3/18, if its the general estate then it will form part of the general pot to distributed to creditors, which now includes lenders, after the deduction of admin costs & fees.

I would be sceptical about getting anything, certainly not in the short term, and treat it as a surprise bonus if it does happen

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