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DMX sues ex-auditor Deloitte over accounting irregularities
IT solutions provider DMX Technologies is suing former auditor Deloitte & Touche LLP in the High Court over accounting irregularities discovered in 2015, the company announced on Friday before the market opened.
DMX is alleging professional negligence on Deloitte's part, and is claiming for loss and damages.
DMX's stock has been suspended since March 20, 2015.
In 2015, DMX changed its external auditor from Deloitte to PwC. Following that change, the new auditor called into question a number of transactions, setting off a deeper investigation. DMX subsequently dismissed former chief executive Jismyl Teo, former chief financial officer Skip Tang and former chairman Emmy Wu. The company also began a number of legal proceedings against some parties as a result of those investigations.
In its suit against Deloitte, DMX says that its former auditor issued clean opinions from 2001 to 2013, where they should have been able to obtain all requisite confirmation from parties such as suppliers and end users.