On November 18, 1998, Livent’s board announced that KPMG’s forensic investigation had revealed “massive, systematic, accounting irregularities that premeated the company.” The press release issued by Livent’s board also disclosed that Deloitte & Touche had withdrawn its audit opinions on the company’s 1995-1997 financial statements. Finally,the press release reported that Drabinsky and Gottlieb had been dismissed and that Livent had simultaneously filed for bankruptcy in Canada and the United States. A few weeks later , a federal grand jury in New York issued a 16-count fraud indictment against Drabinsky and Gottlieb. When the former Livent executives failed to appear for a preliminary court hearing, a U.S. federal judge issued arrest warrants for the two Canadian citizens and initiated extradition proceedings.