Andersen Pays Out And Loses Out

Arthur Andersen is believed to have agreed to pay out $217m in settlement of an action brought by the Baptist Foundation of Arizona bankrupty trust.

The pay-out relates to audit work the firm carried out at the now bankrupt Foundation, in which investors, many elderly churchgoers, are believed to have lost as much as $590m.

The settlement resolves four complaints made against the firm.

In a related story, morale at Andersen would have fallen further on the news Friday that pharmaceuticals giant Merck have axed the firm as it's auditor. Merck are believed to have paid Andersen $6.3m in 2000 for audit-related work.