Ernst & Young announces proposed settlement of Sons of Gwalia matter
Friday, 4 September 2009 — Ernst & Young Australia today announced that it had settled, subject to creditor approval, the Sons of Gwalia proceedings.
Ernst & Young has been vigorously defending claims made against it by the Administrators for Sons of Gwalia, since 2005.
The parties entered into mediation in August 2009.
The proposed settlement is for an amount of A$125 million, including interest and costs. In settling, there were no admissions of any liability by any of the parties.
In announcing the settlement Mr Gerard Dalbosco, Oceania Managing Partner and Chief Executive Officer, Ernst & Young Australia said: “The decision to settle is a commercial one and after four years of litigation we want to bring this matter to a close.”
“By settling this matter we will be able to put it behind us. The firm remains financially strong and we are continuing to, invest in and, grow our business,” said Mr Dalbosco.
“It is important that due process is respected. The Administrator will now seek creditor approval for the proposed settlement in a meeting on 23 September 2009”, said Mr Dalbosco.
Ernst & Young will not be commenting beyond this statement.
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Contact details
Ann-Marie Haygarth
Director Strategic Communications, Oceania
Ernst & Young
Tel: +61 2 9248 4316
