Deloitte, based in New York, took Flanagan to court in Delaware last month for allegedly improperly trading in securities of the firm's clients, Crain's Chicago Business reported Wednesday. Deloitte accuses Flanagan of trading securities of at least 12 clients.
Besides multibillionaire Buffet's Berkshire Hathaway, the former vice chairman's clients included the Archdiocese of Chicago, Allstate Corp., Best Buy Co., Illinois Tool Works Inc., Middleby Corp., Sears Holdings Corp., USG Corp. and Walgreen Co., the Chicago business newspaper said.
Flanagan was a high-flying business adviser in Chicago, where he served on multiple boards.
"Everyone is totally shocked, and Deloitte officials feel betrayed, astonished and angry," said a director on the audit committee for one of the local companies that worked with Flanagan. "He was a very nice person who was professional, steady and reliable."
Flanagan quit in September after presented with the allegations. He had been with Deloitte for 30 years.
The lawsuit, Crain's reported, accuses him of "numerous trades of put and call options" related to securities of the 12 client companies between 2005 and 2008. The clients are not named in the suit.
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