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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