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Litigation
Page 25
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Troubled times A recent report in the Financial Times explains the massive litigation battle DaimlerChrysier has become embroiled in following its purchase of Western Star in 2000.
This tortuous case, due to come to trial in 2005, involves MAN's purchase of ERF from Western Star and the subsequent discovery of an alleged fraud at the UKbased truck builder.
Last year, MAN filed a lawsuit in the English courts against DaimlerChrysler/ Freightliner, in which it alleged ERF had turned out to be an insolvent business. MAN claimed to be out of pocket by E294m.
Freightliner, the owner of Western Star and therefore the company responsible for its past dealings, responded by bringing negligence proceedings against Ernst & Young, whose UK arm had audited ERF in 1998 and 1999 and whose Canadian branch audited Western Star.
Maier is reluctant to add anything to the discussion, apart from remarking that the " FT is very well informed" and concludes: "Ernst & Young should have seen the problems." The case continues.