David Cross

Expertise and Practice

David has over 30 years’ experience with complex investigative litigation in Australia and around the world. His areas of expertise include insolvency, professional negligence, directors’ duties, banking and finance, company law, asset tracing, corporate governance and risk management.

David brings to each project highly developed financial analytical skills, having spent seven years in the corporate finance division of a Big Four accounting firm where he undertook statutory and acquisition due diligence investigations, company valuations, and prepared expert reports and business reconstructions. He also gained valuable experience within the audit division across a wide range of industries, including banking and finance, and is skilled as to the application of audit methodologies and professional auditing and accounting pronouncements. This experience is a distinct advantage in cases that involve these issues, and also generally in working with the firm’s professional clients.

David applies this analytical and methodical approach to all aspects of his practice, and is adept at gathering, analysing and presenting voluminous materials in a clear and persuasive way, which is invaluable on the firm’s large-scale litigation projects and government inquiries.

David is a founding member of LK and, in addition to his client responsibilities, serves as the firm’s Chief Financial Officer. David has a Bachelor of Laws (Honours) and a Bachelor of Economics from the University of Adelaide. He is admitted in the Supreme Court of South Australia, the Federal Court of Australia and the High Court of Australia. David is a dedicated volunteer in athletics with Board experience at peak body and club levels.

Project Highlights

South Australian Government – Confidential Investigation

Advised an agency of the South Australian Government in relation to a complex potential insolvency and regulatory dispute.

Akai Holdings Limited v Ernst & Young

Represented the liquidators of Akai Holdings Limited in a US$800 million audit negligence claim following one of the largest corporate collapses in Asia, which was listed for a six-month trial in Hong Kong and settled in the first week of hearing. The litigation involved extensive pre-trial disputes, including two successful appeals in the Hong Kong Court of Final Appeal addressing issues of legal professional privilege, use of examination transcripts and jurisdiction to order security for costs. It also involved litigation in New York, Bermuda and England. David played a key role in all aspects of the conduct of the proceedings, including working with experts and identifying ex post facto alterations made to evidence.

Akai Holdings (in compulsory liquidation) v Everwin Dynasty Ltd

Represented Akai’s liquidators in pursuing claims for breach of fiduciary duty and misappropriation involving the former Chairman and CEO of Akai Holdings in the High Court of Hong Kong. In one of the largest civil judgments in Hong Kong, the judgment sum (for which Akai was to be compensated) exceeded US$1.2 billion.

Carlyle Capital Corporation Limited

Represented the liquidators of Carlyle Capital Corporation, a Guernsey company listed on Euronext, including investigations and litigation in Guernsey and the United States over the collapse of a US$22 billion hedge fund. Litigation included anti-anti-suit proceedings in the Guernsey Court of Appeal in relation to a forum dispute.

Orient Power Holdings Limited

Represented the liquidators of Orient Power Holdings Limited in audit negligence proceedings against a Big Four accounting firm.

Memory Tech Sdn Bhd

Advised the liquidators of MTSB in respect of audit negligence litigation arising from one of the largest corporate collapses in Malaysia. David assisted with the formulation of claims, negotiation and mediation, and extensive pre-trial disputes, including strike out, security for costs and disclosure.

Bond Corporation Liquidation

Represented the liquidators of Southern Equities Corporation Limited (formerly Bond Corporation Holdings Limited), in investigations and litigation around the world, including actions against former auditors, directors and advisers, in Australia, England, the United States, Canada, Jersey, the Bahamas and Switzerland.

David was primarily focused on the litigation against Bond Corporation’s former auditors, including the investigations necessary for the formulation of claims, working with experts and preparing evidence for the purpose of one of the first electronic trials conducted in South Australia. He also assisted with many of the extensive number of liquidator examinations conducted over nearly a decade. David advised the liquidator on the necessary steps to bring about the finalisation of the liquidation in 2024.

HIH Royal Commission

Retained by the Australian Government in the Royal Commission inquiry into the collapse of the HIH Insurance Group, one of Australia’s largest corporate failures. David played an important role in the investigation, preparation and presentation of evidence and legal advice to the Royal Commissioner, Justice Neville Owen of the Supreme Court of Western Australia. His particular focus was the investigation and presentation of evidence on the role and conduct of the auditors to the HIH Insurance Group, and assisting with the preparation of future policy recommendations in respect of corporate governance and the insurance industry in Australia.

JN Taylor Group Liquidation

Advised the liquidators of JN Taylor Group and led the investigation into the cause of the company’s collapse. The recovery actions that arose from the investigations resulted in 100 cents in the dollar being returned to creditors. David advised the liquidator on the necessary steps to bring about the finalisation of the liquidation in 2023.

State Bank Task Force

Part of the team advising the State Bank Task Force established by the South Australian Government, which conducted proceedings against Price Waterhouse, the auditor of Beneficial Finance, related to the collapse of the State Bank of South Australia in 1991. The litigation was settled with other claims for in excess of AU$100 million.