Spread betting company sues Ernst & Young for negligence

Accountancy firm Ernst & Young & is being sued by a market trading company specialising in spread betting for alleged negligence over its auditing services.

WorldSpreads claims it could not continue to trade after a shortfall was allowed to grow over a number of years in its client account balances, which may exceed £22m (€26m).

It was unable to comply with UK Financial Service Authority (FSA) regulations and led to its board putting the company into special administration in March last year.