Navistar Charges Malpractice

Article excerpt

Navistar charges malpractice

LISLE -- Navistar claimed shoddy work by Deloitte & Touche accountants from 2002 to 2005 forced the company to revise its financial statements, according to a 134-page complaint filed Wednesday in Illinois state court in Chicago."Deloitte lied to Navistar and, on information and belief, to Deloitte's other audit clients, as to the competency of its audit and accounting services," the truck maker alleged. Deloitte & Touche functioned as an auditor, accountant and adviser to Navistar for almost a century, a relationship that ended in April 2006. Navistar said in April 2006 that its restatements for 2002 through the third quarter of 2005 were related to warranties and product-development programs at suppliers. It also said it was replacing Deloitte with KPMG LLP. The restatements were made in 2007. Deloitte spokesman Jonathan Gandal said Navistar's claims lack merit and that the firm would vigorously defend itself.

Allstate profit up

NORTHBROOK -- Allstate Corp., the largest publicly traded U.S. home and auto insurer, said Wednesday first-quarter profit more than quadrupled on a decline in costs tied to natural disasters and gains in investments.Net income surged to $519 million, or 97 cents a share, from $120 million, or 22 cents, a year earlier, the insurer said.Operating income, which excludes some investment results, was 93 cents a share. CEO Thomas Wilson, 53, is working to retain auto customers as drivers shun agents and shop online at direct-to-consumer carriers such as Progressive Corp. and Berkshire Hathaway Inc. …