In Seitz v. Marcum LLP, 2024 N.Y. Slip Op. 51141(U) (Sup. Ct., N.Y. County Aug. 30, 2024) (here), Justice Robert R. Reed of the New York County Commercial Division addressed the doctrine of in pari delicto, which “bars a...more
A U.S.-based brokerage firm suspected unethical activities and compliance issues at their India operations office specifically concerning the involvement of senior management in misappropriating funds and accounting...more
Does the outside accountant of a closely-held business and its individual owners owe a legal duty to disclose to one owner the suspected financial improprieties of another? ...more
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...more
It is common that accountants seek to limit their liability to a client in the event of malpractice. Typically, in the retention agreement, the liability is limited to the amount of fees paid by the client to the accounting...more
A company that specialized in the design and production of optical instruments (hereafter: the Company) hired an accounting firm and a tax consultancy firm (hereinafter: the Accountants) to prepare its annual accounts between...more
Recent regulatory and enforcement developments - Hong Kong - Court rules on disclosure of disciplinary decisions- Accountants and other professionals should not expect that disciplinary decisions against them will remain...more
Hogan Lovells’ global team of securities and professional liability lawyers is uniquely positioned to monitor legal developments across the globe that impact accountants’ liability risk. We have experienced lawyers on five...more
The Netherlands - Breach of an accountant’s duty of care does not always lead to civil liability - In the period of 2001-2002, two accountants drafted a company’s financial statements at the request of the owner who...more
Illinois' First District Appellate Court held that the five-year statute of repose and two-year statute of limitations governing claims against accountants barred plaintiffs' malpractice claims against their longtime...more
To a professional accountant or tax adviser whose career is built on providing clients sound advice, the prospect of a client suffering a loss due to their faulty opinion ranks as the worst possible fear. If an accountant’s...more
Conflicts of interest can arise at any time during a professional engagement. According to the American Institute of Certified Public Accountants (AICPA), “A conflict of interest may occur if a member performs a...more
In a January 19, 2016 Commercial Division decision by Justice Bransten, the court granted defendants’ motions to dismiss on the grounds of in pari delicto....more
Confidentiality Agreement Must be Expressly Preserved in New Employment Agreement. The decision in Meschino v. Frazier Industrial Co., 2015 WL 7295463, at *1 (D. Mass. Nov. 18, 2015) (Stearns, J.), underscores that an...more
Hill International, Inc. v. Atlantic City Board of Education, 2014 N.J. Super. LEXIS 177 (App. Div. Dec. 30, 2014) - The Superior Court of New Jersey, Appellate Division held that, in order to support of claim of...more
The Tennessee General Assembly, which recently ended its legislative session, implemented a new statute of repose for legal malpractice actions. Professional malpractice suits against licensed public accountants, certified...more