Corporate America and accounting firm RubinBrown LLP have entered into a confidential settlement to end their dispute arising in the aftermath of the U.S. Central collapse, according to sources close to the matter.
Corporate America had filed suit against the accounting firm in connection with services RubinBrown had performed for U.S. Central. In a report prepared by RubinBrown, the accounting firm had said that paid-in-capital shares in U.S. Central were worth at least $450 million. Corporate America, in its suit, claimed it relied on that report in deciding to exchange its member capital shares in U.S. Central for PIC. Shortly thereafter, U.S. Central was placed into conservatorship, and the PIC shares were worthless.
Corporate America sued RubinBrown alleging professional negligence and violation of state securities laws.
RubinBrown, for its part, had filed to dismiss Corporate America’s claims, or force matters into arbitration. It previously lost on those counts.
Terms of the settlement ending the litigation were not disclosed.
Neither party admitted any liability to the other.
Sources suggested that the settlement was reached because evidence produced in discovery indicated that RubinBrown had relied upon representations provided to it by U.S. Central management.
Corporate America, for its part, apparently agreed to the resolution in part because it wants to focus its efforts on pursuing claims against the officers and directors of U.S. Central.