New development in Rigas saga
Auditor drops claims against the family

Although John Rigas and his son Tim are now in prison, litigation stemming from the fall of Adelphia more than five years ago continues.

On Thursday, members of the Rigas family issued a news release to announce that auditing firm Deloitte & Touche had dropped all claims against the Rigas family stemming from financial dealings involving both the family and Adelphia.

"The Rigas family is anxious for the truth to be told . . . ," said James Rigas, third of John and Doris Rigas's sons. "It is obvious that Deloitte backed down on the eve of the trial (scheduled to start Sept. 7) because it could not prove any of its claims against the Rigas family."

With the recent settlement of the Adelphia suit against Deloitte, the Rigases said in their release, Deloitte has now paid more than $430 million to settle claims brought against the firm relating to its role at Adelphia.

Deloitte & Touche sued the Rigases in 2003, alleging frauds and negligent misrepresentation. Last week, a judge dismissed a portion of the claims. On Thursday, Deloitte withdrew the others. However, the Rigases have asked the judge to strike that action and require the case to be tried on its merits.

At the heart of the issue is the fact that three members of the Rigas family faced criminal charges based largely on Adelphia's accouting and financial management practices, while the company paid Deloitte & Touche millions of dollars annually to audit its books and certify the legality of those practices.

Deloitte was not held criminally responsible. It paid a $50 million settlement to the federal government after allegations were brought by the U.S. Securities & Exchange Commission. Deloitte also paid $210 million to settle with Adelphia's investors.

In their release, the Rigases said, "Deloitte's failure to stand behind its own recommendations, advice and audit work was a precipitating factor and major cause of the collapse of Adelphia. Deloitte's refusal to cooperate with the Rigases prior to the criminal trial prevented John and Timothy Rigas from presenting a complete defense, resulting in an inaccurate picture of the events at Adelphia which contributed to an erroneous verdict."