A PLN 430m lawsuit has been filed in the Arbitration Court in Warsaw by Emperia company against Ernst & Young in regards to the sell-off of Emperia’s subsidiary Tradis to Eurocash. Although the two parties appeared to have buried the hatchet shortly after the deal was closed, the conflict returned a few days ago, with Emperia seeking a relief from the court and accusing E&Y for exposing the company to a huge loss. Ernst & Young was selected to carry out the valuation process of Tradis, by both Emperia and Eurocash to fix the price of the company set to go on sale. Shortly before the process was completed, the adviser requested it be released from responsibility for the effect of the work, saying it could only make the valuation using its own procedures. As a result, the two companies have been left with two different valuation results. The agreement between Emperia and Eurocash was reached quickly, though vendor believes it has suffered a huge loss due to the trouble deal and expects to squeeze out as much as PLN 43m from Ernst & Young company, which for its part considers the charges to be groundless.
