New York High Court Exonerates Advisers for Aiding and Abetting Corporate Fraud

The Delaware Supreme Court recently affirmed a judge's order dismissing a derivative action fined against American International Group's outside auditor, PricehouseCoopers. Teacher's Ret. Sys. of La. v. PricehouseCoopers LLP, No. 454-2009, 2011 WL 13545 (Del. Jan. 3, 2011).

The high court's order followed a determination by the New York Court of Appeals that the doctrine of in pari delicto barred a derivative action against a third-party service provider like PwC, regardless of its own negligence. Kirschner v. KPMG LLP, 938 N.E. 2d 941, 2010 WL 4116609 (N.Y. Oct 20, 2010).

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Published In: Business Organization Updates, Civil Procedure Updates, Finance & Banking Updates, Personal Injury Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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