A group of investment funds are suing the affiliates of Deloitte Touche Tohmatsu after substantial investment losses from investments with ChinaCast Education.

Investors are seeking tens of millions of dollars from the action against Deloitte, who audited ChinaCast for 2007 to 2010.

The investors stated in the class action lawsuit, filed in Manhattan, that "Deloitte put its name and brand behind the certification of financial statements that were almost entirely false".

ChinaCast has been hit by reports of irregularities regarding its former chief executive Ron Chan, with the company’s’ assets being placed directly under Chan’s control, according to accusers.