Arbitration Decision Reached in McGladrey/Block Dispute
An arbitration panel has issued a ruling regarding the negotiations between RSM McGladrey, the H&R Block subsidiary, and McGladrey & Pullen over the latter's decision earlier this year to end its alternative practice arrangement with the Block unit. While the findings remain confidential, Block's president and CEO Russell Smyth expressed optimism that talks with the accounting firm would allow their relationship to continue.
"We continue to have very positive and productive conversations with the McGladrey & Pullen board and we are very optimistic that this is going to be settled within the next few weeks," Smyth said in Block's earnings conference call yesterday. As part of its press release regarding results for the second quarter ended October 31, Block said it was optimistic that negotiations would result in mutually acceptable changes to keep the relationship intact.
