N.Y. lawyers launch class-action suit against Livent

Article Abstract:

Livent Inc., a theater company in Toronto, Ontario, is the target of a class-action suit filed by the law firm Bernstein Litowitz Berger & Grossman LLP of New York on allegations that it padded profit for the past nine years by materially overstating Livent's revenues. Livent has also been accused of understating its amortization expense connected to preproduction costs reflected on its balance sheets. The suit names Livent's present and former senior officials and board of directors as defendants. It specifically aims at Livent founders Garth Drabinsky and Myron Gottlieb as the ones responsible for aggressive accounting that goes against generally accepted accounting principles (GAAP) in the US.

Comment:

Is named in class-action suit filed by law firm for alleged padding of profit for past nine years

Performing Arts Companies, Theatrical & Concert Artists & Producers

Livent warns of hefty writedown

Article Abstract:

Livent Inc. alerted observers to a huge writedown it will take in the second quarter of 1998 and to a probable restatement of its audited financial statements beyond previously announced nine quarters. The firm's new management also expects required adjustments for 1996, 1997 and the first quarter of 198 to be material. The development is a result of a continuing probe of the accounting irregularities detected sometime in August 1998. Meanwhile, the live-theatre production firm does not anticipate adverse effects on its current cash flow or operations due to the irregularities.

Comment:

Forewarns a huge writedown for the second quarter of 1998 and a probable restatement of earlier audited financial reports

Sales, profits & dividends, Motion Picture & TV Production NEC, Other Motion Picture and Video Industries, Movie production, Television production

KPMG wins right to appeal judgement in Livent case

Article Abstract:

KPMG, an accounting services firm, received permission from the Ontario Divisional Court's Mr. Justice Alvin Rosenberg to appeal a ruling that prevented it from releasing data from a forensic audit into Livent Inc. The information, whose release will negatively affect Livent co-founder Garth Drabinsky, will show that Livent suffered from strange accounting practices. Drabinsky and his partner Myron Gottlieb were suspended by the new owners of the troubled Livent after these parties scrutinized the incomprehensible books of the firm starting August 1998.

Comment:

Receives permission from the Ontario Divisional Court's Mr. Justice Alvin Rosenberg to appeal a ruling

Accounting & Auditing Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Ontario, KPMG