P.M. BRIEFING : Accountants to File Chapter 11
Laventhol & Horwath, the nation’s seventh-largest accounting firm, has decided to file for bankruptcy court protection, published reports said today.
The St. Louis Post-Dispatch said the firm’s partners learned of the bankruptcy plan during a meeting this weekend in Houston, and said the filing was largely due to costly lawsuits.
The New York Times said the firm’s 350 partners had voted to file for protection from creditors under Chapter 11 of the federal bankruptcy laws and to disband the firm.
The Chapter 11 bankruptcy petition may be filed Friday, a Laventhol & Horwath partner told the Post-Dispatch.
Bart Connors, managing partner of Laventhol & Horwath’s St. Louis office, told the newspaper that the “major contributing factor” to the bankruptcy filing was lawsuits filed primarily by businesses challenging audits or by shareholders contending that they got faulty financial information.
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