Global consultancy giant Deloitte has launched legal proceedings against three prominent Asian partners, including a senior Chinese executive, over allegations of orchestrating a mass defection whilst attempting to misappropriate confidential client information.
The Hong Kong high court filings reveal that Derek Lai, who previously managed southern China regions and headed insolvency operations across Asia Pacific, alongside partners Adrian Chan and Forrest Kam, allegedly conspired to facilitate the departure of nine partners to an unnamed competitor between July and November.
Internal investigations at Deloitte uncovered evidence suggesting Chan and Kam downloaded substantial quantities of private client data, purportedly for conflict-of-interest checks at their prospective new employer. The scheme came to light through communications and documents discovered on company devices and servers.
The legal action specifically targets Lai, a Deloitte veteran who significantly expanded the restructuring team’s presence in the region. Under his leadership, the team handled high-profile cases including the liquidation of Asia TV and the administration of Nina Wang Kung Yu-sum’s estate, once Asia’s wealthiest woman.
The firm, which generates £52.9 billion in global revenues and employs 460,000 people worldwide, is seeking damages and an injunction to prevent the partners from trading. This legal battle emerges during Deloitte’s most significant restructuring in a decade, as the firm consolidates its operations into four primary divisions.
The case highlights the increasingly competitive nature of professional services in Asia, where team poaching has become commonplace. Deloitte’s Chinese operations, established in 1917, have traditionally been among its fastest-growing regions, though recent reports suggest flattening revenue growth.
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