Livent Auditor Ordered To Pay

Canadian auditing firm Deloitte & Touche has been ordered to pay $33 million in interest payments to creditors of defunct theatre company Livent.

Photo: AP Photo

The company’s founders, Garth Drabinsky and Myron Gottlieb, served several years in prison after a judge ruled in 2009 that they’d manipulated the statements of Livent to attract investors.

Ontario Superior Court Justice Arthur Gans ruled in April that Deloitte & Touche, which was Livent’s former auditing firm, was negligent in reviewing the theatre company’s financial statements and owed $85 million in damages to creditors, according to the Globe And Mail.

In his decision, Gans wrote that Deloitte auditors had breached their “duty of care” and “seemed to turn a blind eye to warning signs” about a 1997 transaction that involved the air rights about Livent’s Pantages Theatre in Toronto.

Deloitte has appealed the ruling, the paper reported.

In related Livent News, Ontario’s law society recently ordered that Drabinsky’s law license be revoked in light of his criminal offenses.