News & Analysis as of

Negligence Audits

Freiberger Haber LLP

In Pari Delicto … What Does That Mean?

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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

BakerHostetler

SEC Approves PCAOB’s Rule Expanding Contributory Liability

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For nearly two decades since its enactment in 2005, PCAOB Rule 3502 prohibited any “person associated with a registered public accounting” firm from taking or omitting to take an action knowingly or recklessly in a way that...more

DLA Piper

SEC Approves PCAOB Rule Amendment That Expands Individual Auditor Enforcement Liability

DLA Piper on

The Securities and Exchange Commission (SEC) approved a proposed amendment to Public Company Accounting Oversight Board (PCAOB) Rule 3502. The amended rule expands enforcement liability for associated persons who...more

Hogan Lovells

Auditors’ liability – English case casts doubt on effectiveness of disclaimers in negligence actions

Hogan Lovells on

A recent English case may cause concern amongst Hong Kong auditors hoping to protect themselves from liability towards third parties by the inclusion of standard disclaimer wording in their engagement agreements. The decision...more

Orrick, Herrington & Sutcliffe LLP

English High Court Sheds Light on the Scope of an Auditor’s Duty in Ickenham Travel Group Limited v Tiffin Green Limited

The High Court recently dismissed a claim by Ickenham Travel Group Limited (ITG) against its former auditor, Tiffin Green Limited. The decision sheds light on how English courts are likely to approach audit negligence...more

Ankura

Patisserie Valerie: How the Allegations Unfolded

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Patisserie Valerie is a British patisserie and café chain. In 2018, the company found itself at the centre of an alleged accounting scandal. In 2019, Patisserie Valerie announced that its board had been notified of accounting...more

Latham & Watkins LLP

Food for Thought: Individuals Remain in SFO’s Sights as Four From Patisserie Valerie Charged With Fraud

Latham & Watkins LLP on

Individuals continue to face risk from prosecutions for economic crime, despite media focus on corporate criminal liability reforms. Four individuals have today appeared at Westminster Magistrates’ Court charged with fraud...more

Health Care Compliance Association (HCCA)

In This Month’s E-News: September 2023

A criminology professor at Florida State University (FSU), dogged by accusations of research misconduct and the subject of multiple probes, was terminated last month, according to a letter published by Retraction Watch. Hired...more

Goodwin

Private Funds Rules Set to Be Adopted - What to Watch For

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The SEC (U.S. Securities and Exchange Commission) has provided notice that it is preparing to adopt the so-called “Private Funds Rules” under the Investment Advisers Act of 1940 (the “Advisers Act”) on August 23, 2023....more

Winstead PC

Federal Court Holds That Texas Does Not Have An Independent Aiding And Abetting Claim For Breach Of Fiduciary Duty But Holds That...

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In Taylor v. Rothstein Kass & Co., PLLC, a receiver for a failed business sued an accounting firm for various claims arising from the auditor’s issuance of a clean audit report concerning certain financial statements. No....more

Stinson - Corporate & Securities Law Blog

SEC Reverses PCAOB’s Findings of Repeated Negligent Conduct by Audit Partner

In a review of a PCAOB disciplinary proceeding the SEC took the rare step of cancelling the PCAOB’s finding that an audit partner of a Big Four firm engaged in repeated instances of negligent conduct during the audit of a...more

UB Greensfelder LLP

The Folly Of ADV Disclosures: What The Robare Decision Teaches About Trying To Do It Right

UB Greensfelder LLP on

Most of the time, the cases I write about were some other lawyer’s. In some respects, it’s easier to offer comments when it isn’t my case. I can, hopefully, be more objective, less pissed off (when the result is one I...more

Farrell Fritz, P.C.

All Employees Must Wash Hands: Case Dismissed on the Grounds of In Pari Delicto

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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

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