ESG Re launches legal action against Deloitte & Touche citing negligence
ESG Re has launched a legal action against Deloitte & Touche accusing the accounting giant of negligence resulting in loss of business, according to the Sunday Business Post, an Irish newspaper.
ESG is suing Deloitte & Touche (Ireland), Deloitte & Touche in the US and Deloitte & Touche (Bermuda) claiming that due to the failure of the accounting firm to adequately carry out its duties the reinsurance company lost a significant amount of reinsurance business – as a result ESG is claiming $22m in damages.
ESG Re's action is based upon a decision by Deloitte to terminate an auditing engagement contract in 2002, which resulted in ESG being delisted from NASDAQ due to its inability to file its Q3 2002 returns on time. As a result the reinsurer claims it was unable to write new business and lost a number of reinsurance contracts.