Case: Recovering losses from payment of dividends from auditors

Earlier this year the case of BTI 2014 LLC v Sequana SA & ors [2019] EWCA Civ 112 dealt with various issues arising out of two dividends totalling €578m (£490m), paid by Arjo Wiggins Appleton Limited (AWA) to its parent company Sequana SA (Sequana) (see: Accountancy Daily, April 2019 "Dividends: directors' duties and defrauding creditors).

The facts

At the time the dividends were paid, AWA had ceased to trade and had one material liability to British American Tobacco Industries plc (BAT) under an indemnity relating to clean-up costs and damages for river pollution in the US.