“Big Three” Accounting Travel Rebate Fraud Class Action
NP filed a putative nationwide class action in Arkansas state court on behalf of clients of the “Big Three” accounting firms alleging the accounting firms overcharged their clients for costs and expenses paid to travel vendors by billing their clients the full face amount of these costs while, at the same time, receiving back-end rebates, incentives, commissions, and other compensation.
After approximately two years of contentious litigation, NP obtained settlements with each of the “Big Three” accounting firms totaling $108M on behalf of the customer classes they represented. These settlements also included significant corporate governance changes–the accounting firms were prohibited from engaging in the offensive conduct and from coordinating their travel program with that of any other accounting firm. Each of the settlements received final approval.
The class was represented by NP partners Michael Angelovich and Cary Patterson.