KPMG whistleblower Brendan Lyon’s court win challenge’s the Big Four’s cosiest lurk, immunity from prosecution. Stephanie Tran reports.
Winning a protective costs order in the NSW Supreme Court may not sound like much but it could have major implications for liability protections enjoyed by Australia’s Big Four consulting firms.
Earlier this month, Justice Tim Faulkner ordered that any costs that may ultimately be awarded against KPMG whistleblower Brendan Lyon in the proceedings against accountancy peak body and Big Four advocacy group CA ANZ be capped at $25,000.
The order is significant because CA ANZ had estimated its recoverable costs for the litigation at between $409,000 and $463,000, and without the protection, Lyon argued, the potential exposure to hundreds of thousands of dollars in adverse costs would force him to abandon the case.
The court’s decision means the substantive challenge can now proceed without Lyon facing the prospect of a potentially ruinous costs bill if he loses.
Lyons sued Chartered Accountants Australia and New Zealand (CA ANZ) over its administration of the professional standards scheme, which he says has undermined accountability of the Big Four.
If successful, Lyon’s case could make big four consultants (KPMG, EY, PwC and Deloitte) liable for any damages caused by their work, and
“create stronger incentives for ethical and competent conduct.”
Lyon became a prominent whistleblower after raising concerns...
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