Ernst & Young may have paid €50m to settle Landis claim

DutchNews.nl, 09 July 2013

Sources have told the NRC that accountancy group Ernst & Young may have paid up to €50m to settle a dispute stemming from the bankruptcy of IT company Landis in 2002.

Ernst & Young was Landis' house accountant and was accused by the official receivers of misleading investors, creditors and banks on a massive scale by publishing wrong profit and sales figures.

In March, the company appeal court said the Ernst & Young accountant had 'very seriously failed' to do his job, having approved the company's accounts without reason.

Deals

Last month it emerged Ernst & Young had reached an €11.5m deal with the receivers and earlier on Tuesday the Financieele Dagblad said at least €20m would go to a consortium of banks.

But sources told the NRC the deal with the banks, including ING, ABN Amro and RBS, may be for as much as €34.5m. And the shareholders' association VEB is after a further €6.5m to €7m.

Ernst & Young declined to comment on the reports because the talks with the VEB are ongoing, the NRC said.

Landis collapsed in 2002, leaving debts of €600m and 3,200 workers without a job. The bankruptcy was one of the biggest in Dutch corporate history.