The Manchester Building Society sues accountants Grant Thornton

Tim Wallace
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The Manchester is the UK’s 19th largest building society, with a turnover of £13.5m
The Manchester Building Society yesterday accused Grant Thornton of negligence in its auditing, filing a claim for £49m in damages from the accountants.

The mutual lender said Grant Thornton gave it incorrect advice on hedge accounting.

The legal action is “for breach of contract, negligence and breach of statutory duty relating to audit services and advice provided in the years from 2006 up to and including 2013, at which point Grant Thornton resigned as the Society’s external auditors”, the building society said.

Grant Thornton gave few details about their responses to the legal action. “As a large professional services firm, there are inevitably occasions where we become involved in legal claims,” said a Grant Thornton spokesperson.

“Naturally, our obligations of confidentiality mean that we cannot comment on the detail of any litigation in which the firm is involved.”