Accountants’ Liability
Experienced advice to help navigate an ever-changing legal and regulatory landscape.
We help accounting firms and their professionals evaluate and mitigate risks, defend against claims from clients and third parties, and respond to inquiries and enforcement actions from regulators. As we tell our clients’ stories, we know the importance of describing the scope and limitations on the work that accountants provide (and do not provide) and the context in which they interact with clients and third parties as they perform their services.
Our services include defending accountants in:
- Securities class actions
- Trustee Litigation
- Lender Suits
- Client claims
- PCAOB & Securities and Exchange Commission investigations
- State Boards of Accountancy Proceedings
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Representative Matters
- Representing an accounting firm partner in an SEC Enforcement action related to the collapse of a major cryptocurrency exchange. Investigation pending.
- Representing an accounting firm in a suit by a surety related to an audit performed on a construction company client. Case pending.
- Representing an accounting firm in a negligence suit brought by a client over its former CFO’s embezzlement. Motion to compel arbitration pending.
- Representing an accounting firm in an SEC investigation of a real estate investment company. Investigation pending.
- Obtained dismissal of a securities class action brought by investors against an accounting firm based on public offerings of common stock.
- Obtained partial dismissal and later summary judgment of all remaining claims, which the Second Circuit affirmed, in favor of an accounting firm by the Liquidating Trustee of a specialty finance company seeking in excess of $300 million related to claims for professional malpractice, breach of contract, negligent misrepresentation, fraud, aiding and abetting fraud, aiding and abetting breach of fiduciary duty and deepening insolvency.
- Obtained dismissal in favor of an accounting firm in a Madoff-related suit brought by limited partners in a sub-feeder fund.
- Obtained dismissal in favor of an accounting firm in litigation brought by a limited partner in a real estate limited partnership who alleged fraud.
- Obtained dismissal in favor of an accounting firm in a fraud suit filed by the purchaser of an entity for whom the firm had performed due diligence services. Plaintiff claimed that the accounting firm had made fraudulent misrepresentations in its report and in discussions that helped the majority shareholders fraudulently obscure the acquisition company’s true financial condition.
- Obtained dismissal in favor of an accounting firm in a lawsuit brought by a non-profit client over the theft of funds by an employee of the non-profit over a three-year period.
- Obtained dismissal in favor of an accounting firm on the grounds of international comity in a series of consolidated securities class actions that claimed the accounting firm committed securities violations during its audits of an international manufacturer.
- Obtained dismissal of claims brought against an accounting firm by a bank client and certain of its shareholders, who alleged negligence and gross negligence. After the court granted the defendants’ initial motion to dismiss in its entirety, the plaintiffs filed an amended complaint. The trial court dismissed two of the three new claims brought by plaintiffs, including the entirety of the shareholders’ claim. The sole remaining claim was settled on favorable terms at mediation, as required under the engagement letter.
- Obtained dismissal of an accounting firm in a securities class action brought by investors based on public offerings of common stock.
- Represented an individual audit partner in an SEC Enforcement action related to an audit of a public company involved in commodities trading. Settlement reached.
- Represented an accounting firm partner in litigation by a former firm client who claims to have invested, at the recommendation of the partner, in funds where the fund manager has admitted to committing investor fraud. Settlement reached.
- Defended an accounting firm and partner in a PCAOB enforcement action related to an audit of a broker-dealer. Settlement reached.
- Represented an accounting firm partner in litigation by a former firm client who claims to have invested, at the recommendation of the partner, in funds where the fund manager has admitted to committing investor fraud. Settlement reached.
- Defended an accounting firm and partner in a PCAOB enforcement action related to an audit of a broker-dealer. Settlement reached.
- Represented an individual audit partner in an SEC Enforcement action related to an audit of a public company involved in commodities trading. Settlement reached.
- Represented several firms and audit partners in Pennsylvania State Board of Accountancy matters. Settlements reached, or actions declined.
- Represented audit partners in New Jersey State Board of Accountancy matters. Board declined to take action against client.
- Represented accounting firm and individual partners in New York Office of Professional Discipline matters. Settlements reached.