BDO Settles Bankruptcy Lawsuit

New York-based BDO Seidman LLP has settled a lawsuit over a $285 million loan made to LeNature’s Inc. before it went bankrupt in 2006. BDO prepared the financial statements for the beverage company and the loan was arranged by Wachovia Capital Markets. Le-Nature later went bankrupt, and Normandy Hill Master Fund LP, which bought some of the debt, sued in June 2010.

The settlement was filed April 2 in New York State Supreme Court in Manhattan but the terms weren’t disclosed. “It has been resolved and the parties are pleased to put it behind them,” Aaron Mitchell, an attorney for the plaintiffs, told Bloomberg News.

Company founder Gregory J. Podlucky and others were indicted in September 2009 on charges they cheated creditors out of more than $800 million by overstating company revenue. Podlucky was sentenced to 20 years in prison in October. Executive Vice President Robert Lynn was sentenced to 15 years in prison in January.

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