Chicago (May 8, 2002) -- In keeping with its plan to strip away all of its non-audit businesses as part of reform efforts, Andersen said it has closed a deal with Ernst & Young for its Detroit, Ann Arbor, Grand Rapids and Toledo offices. Under the agreement, 159 Andersen employees, including 14 partners and principals, will join Ernst & Young. Terms of the agreement were not disclosed."To sustain an ongoing business for Andersen, in light of the realized and expected loss of clients, we are reducing the scope and scale of our United States practice," the firm said in a statement released Monday evening. "We are aligning our personnel complement and cost structure with our revenue base."
Separately, the firm said it reached an agreement for a global settlement of legal matters related to its work for the Baptist Foundation of Arizona. The deal, which is subject to final court approval, calls for the payment of $217 million and resolves all litigation brought against Arthur Andersen LLP by BFA investors, the BFA bankruptcy trustee and state regulatory bodies. Andersen did not admit or deny any fault in the matter.
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