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So the now infamous Arthur Andersen CPA firm has settled its
class-action lawsuit and is ordered to pay a whopping $65M in damages. Now, I
know that seems like a lot of money, but considering that Arthur Andersen was
the firm auditing WorldCom, which committed fraud worth about $11B, $65M seems
like an easy out. I am actually surprised that the plaintiffs agreed to settle
for this amount, given that it does not seem like it would have been all that difficult
to convince the courts that Arthur Andersen acted with gross negligence, which,
would have had the plaintiffs see a much larger amount (we are covering similar
topics in one of my classes…can you tell?). Oh well, I guess it is better to go
easy and ensure to receive an amount, than to risk the possibility of not
receiving any money at all. And now, I am off to study. Enjoy.