UK’s Accountancy Age analyzes BDO Seidman’s future as it appeals the verdict in the ES Bankest case, and also takes a look at the impact on BDO International and BDO Stoy Hayward, the UK member firm of BDOI.
Firms in the UK are desperately keen on boasting about their US counterparts – until they hit trouble, that is.
KPMG’s tax issues in the US were one thing. BDO’s problems with its US firm BDO Seidman look equally troubling.
The article notes that BDO Seidman’s appeal is pending and that the firm has a strong track record of defending itself against lawsuits. “Admirably, perhaps, it does not just pay out.” Furthermore, BDOI has defeated an effort to make it jointly liable in the suit, and BDO Stoy Hayward remains “relaxed” regarding the claim. However, should something happen to BDO Seidman, that attitude would change.
The alternative could be extremely worrying for BDO Stoy Hayward in the UK, which relies on Seidman for its exposure to the US. Its clients with US operations need Seidman’s assistance there, and it will get referrals from there too.