A number of US investment funds have sued the Chinese and US units of auditor Deloitte Touche Tohmatsu over losses at education provider ChinaCast Education, Reuters reported. The plaintiffs are suing Deloitte, which reviewed the Chinese firm’s financial statements, for tens of millions of dollars of capital losses. ChinaCast was delisted from the Nasdaq stock exchange in 2011 for not posting its yearly financials and has been battling allegations of irregular accounting activity by its former chief executive Ron Chan, who was outed from the company last year. The funds are attempting to hold Deloitte accountable for failing to spot a theft of assets by Chan via transfers to an entity in his name.
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