Settling a Big Tab

Deloitte & Touche has agreed to pay $167.5 million to settle claims that it had failed to notice the multibillion-dollar fraud that had simmered at cable operator Adelphia before it collapsed into bankruptcy in 2002.

The payout "is among the largest settlements ever reached between a public accounting firm and its audit client," according to the Adelphia Recovery Trust, which negotiated the agreement on behalf of creditors and investors who lost their shirts when the company failed, said the

More money may come as the trust continues to press claims against Adelphia's former lenders and others who took part in the "massive financial fraud" at Adelphia.

But investors holding worthless stock should not hold their breath while waiting for any money to trickle down to them.

In announcing the settlement, the Trust noted it may, at its discretion, "retain some or all of the settlement proceeds for funding its operations," including its overhead and legal fees.

It adds: "No decision has been made as to the amount or timing of any distributions to Trust interest holders." That is, to the unlucky shareholders.

by Mark Stein