US receiver wants cases against Grant Thornton to be merged
The receiver of a Florida-based investment firm has asked a court in the state to merge a case he has taken against Grant Thornton Ireland and the accountancy firm’s office in the Cayman Islands into an existing legal action that includes them.
The receiver is also hoping that the move will thwart an effort by Grant Thornton to have his case in Florida against its offices dismissed for alleged lack of jurisdiction.
Grant Thornton has argued that if the claims by the receiver were to be pursued at all, they should be done in the Cayman Islands.
Jonathan Perlman, the receiver of the Florida-based investment firm TCA Fund Management Group, and related entities, sued Grant Thornton Ireland and Grant Thornton Cayman Islands in January, claiming that the pair took part in a cover-up by colluding during audits to help the investment firm engage in fraudulent activity that resulted in a $400m (€367.4m) black hole in its balance sheet.
He alleges that the Irish and Cayman Islands offices of the accountancy firm issued audit reports “that knowingly downplayed and omitted material problems with the receivership entities’ accounting practices and financial condition, hiding material adverse information from the receivership entities’ independent directors”.
A partner at Grant Thornton Ireland, John Glennon, has also been accused by Mr Perlman in the same legal action of having helped the US firm’s master fund to tailor the wording of potentially negative audit findings to minimise investor concerns.
Grant Thornton Ireland rejected the allegations in January when the lawsuit was launched.
“Grant Thornton Ireland categorically denies all claims of wrongdoing alleged regarding its work on the TCA Global audits,” said a spokesperson.
Last week, Grant Thornton in Ireland and the Cayman Islands filed a motion to have the case dismissed for lack of jurisdiction.
Now Mr Perlman has asked the court to merge the case with another action, which was launched in Miami in 2020 by investors in entities connected to TCA Fund Management against TCA and its former executives. Grant Thornton Ireland and Grant Thornton Cayman Islands are also listed as defendants in that case.
“The related action involves claims against Grant Thornton brought by investors, or class plaintiffs, in the receivership entities,” Mr Perlman has told the court.
“The class plaintiffs’ claims arise from the same facts involving the same conduct by the same defendants and entail substantially similar issues as the receiver’s claims.”
Mr Perlman has told the court that in the related case, Grant Thornton also filed a motion to dismiss the case against them for lack of personal jurisdiction.
However, last summer the judge hearing that case, Robert Scola, rejected that motion.
Grant Thornton has acknowledged in its motion to dismiss in the latest case that its previous similar motion in the related case was unsuccessful. However, the accountancy firm’s offices said they “disagree with that ruling”.
In seeking to consolidate the two legal actions, Mr Perlman maintains that the case launched in 2020 and the action filed in January “involve the very same conduct by the same defendants evidenced by the same documents and witnesses”.
“Thus, allowing the matters to proceed separately would create a risk of inconsistent verdicts and increase the burden on the parties and witnesses by exposing them to duplicative discovery and duplicative litigation,” he said.
The Six Nations rugby sponsorship by Guinness 0.0 – the alcohol free stout produced by the drinks maker – is among a number of initiatives Diageo is shortlisted for in this year’s All-Ireland Marketing (AIM) Awards.
Diageo Ireland is nominated in six categories, including top sports sponsorship.
ESB and Allianz Ireland have five nominations each while WaterWipes, SuperValu Musgrave and Laya Healthcare all have four shortlisted entries.
The AIM Awards are organised by the Marketing Institute Ireland (MII) and finalists have been shortlisted across 22 categories.
Guinness 0.0’s rugby sponsorship initially sparked controversy because of restrictions on alcohol brand sponsorship, but it has proved a boon for the
Accountancy group’s Irish office is accused of being involved in a ‘cover-up’
historic Irish brewery’s non-alcoholic stout alternative.
From a relatively little-known product when the rugby deal was struck, the 0.0 brand has moved into the mainstream.
Diageo has set a target of getting Guinness 0.0 draught into 2,000 Irish pubs, bars, restaurants and hotels this year and over 4pc of the stout brewed at its St James’s Gate Brewery is now non-alcoholic.
That figure was shared by Diageo CEO Debra Crew during a call with analysts accompanying its results for the first half of its 2024 financial year last month.
Meanwhile, AIM saw a record number of entries this year, according to Shane McGonigle, CEO of Marketing Institute Ireland.
“It is very clear from the results we are witnessing in these entries, that professional marketers are making the difference. We are seeing competitive advantage being achieved through strategic brand management, leading to winning in-market value propositions, dramatised through consistent innovation and creative investment,” he said.
Finalists will showcase their work in front of an expert judging panel who will select the winners to be announced at a gala event on May 23 at the Clayton Hotel, Burlington Road, Dublin.
Marketing Institute Ireland chief marketing officer Theresa Roseingrave said the awards recognise the contribution marketing professionals make to their own businesses and the wider economy.
“We have incredible marketing talent here in Ireland and it’s our role in MII to celebrate, acknowledge and highlight the value these professionals bring to not only their companies, but also to Ireland’s economy,” she said.
“Grant Thornton Ireland categorically denies all claims of wrongdoing alleged regarding its work on the TCA Global audits”