Our global team of securities and professional liability lawyers at Hogan Lovells is uniquely positioned to monitor legal developments across the globe that impact accountants’ liability risk. We have experienced lawyers on five continents ready to meet the complex needs of today’s largest accounting firms as they navigate the extensive rules, regulations, and case law that shape their profession. We recently identified developments of interest in The Netherlands, the United States, and Hong Kong, which are summarized in the pages that follow.

The Netherlands Recent Court Decisions Accountant is not liable for an overly optimistic liquidity forecast in relation to a takeover Introduction and facts A decision rendered by the Court of Appeal Arnhem-Leeuwarden on 21 September 2021 involved an Accounting firm’s (Accountant) claim for payment and a counterclaim by one of the Accountant’s clients (the Company). In the counterclaim, the Company claimed the Accountant had breached its contract by preparing a liquidity forecast for the second part of 2018 that proved to be too optimistic.