Manchester Building Society Sues Former Accountants

Manchester Building Society is suing its former accountants for £49 million as a result of negligence for its audit work carried out between 2006 and 2013.

Manchester Building Society has filed a negligence claim against its former accountants, Grant Thornton, for at least £49 million after it was forced to restate its accounts and raise £18 million to cover a capital shortfall. The building society has also accused Grant Thornton of a breach of contract and breach of statutory duty in relation to its advice and auditing services.

A spokesperson for Grant Thornton said:

"As a large professional services firm, there are inevitably occasions where we become involved in legal claims.

"Naturally, our obligations of confidentiality mean that we cannot comment on the detail of any litigation in which the firm is involved."

The claim also covers an issue which the Financial Reporting Council has been investigating since August 2013, of which a spokesperson for the FRC has said is still ongoing. However, an audit quality inspection report published by the FRC last month found that 3 of the eight audits investigated required significant improvements.

If you've suffered as a result of someone else's negligence, contact our negligence solicitors on 0800 811 844 for advice.

Mellor Hargreaves Ltd

Negligence Solicitors