Andersen loses another major client

Andersen lost pharmaceuticals giant Merck & Co. as a client Friday, as the accounting firm agreed to pay $217 million to settle a malpractice lawsuit in Arizona.
About 13,000 mostly elderly investors lost nearly $590 million when the Baptist Foundation of Arizona reported huge real estate losses dating back to the early 1980s. According to the lawsuits, Chicago-based Andersen failed to disclose financial wrongdoing by the foundation's managers and ignored warnings of potential trouble.
"Many of the investors are over 70," said John P. Coffey, attorney for the foundation trustee. He said the settlement greatly speeds return of money to the victims.