BDO Seidman Damages BDO Seidman Damages Rise to $521 Million

A Florida jury, in a potentially crippling financial blow, ruled accounting firm BDO Seidman LLP is on the hook for $521 million for its failure to spot a fraud that led to the bankruptcy of a Miami financial-services company.

The jury ruled yesterday that BDO must pay $351 million in punitive damages, a day after it had assessed a base damages award of $170 million against the firm. The jury in June had found BDO grossly negligent in its audits of E.S. Bankest LLC, which collapsed in the wake of a fraud by top executives, who have since been jailed. BDO was sued in the civil action by Portugal's Banco Espirito Santo SA, a shareholder in Bankest.

BDO said it would appeal, adding the award was "not by any means the final result in this case."

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