Jury Verdict Against KPMG for Negligent Misrepresentations in Audit Report
Article:
Failure to detect misstatements in financial statements result in a $38.8M jury verdict in the Cast Art Industries, LLC vs. KPMG LLP case.
Published on May 03, 2013
Potts v. SEC
Legal Brief:
Brief of amicus curiae for the AICPA in support of the petition of Robert D. Potts. The SEC sanctioned Potts for ""improper professional conduct"" in performing duties as a concurring reviewer during an audit of certain financial statements in 1988 and 1989.
Published on April 02, 2013
Erica John Fund, Inc. v. Halliburton Co.
Legal Brief:
The AICPA, on behalf of its members, has a keen interest in assuring that its members and their firms, as well as all others involved in the financial reporting process, are able to raise, and have considered before the class certification decision is made, challenges to the underlying assumptions required for
Published on April 22, 2011
Cast Art Industries, LLC Scott Sherman Gary Barsellotti and Frank Colapinto vs. KPMG LLP John Quinn John Shaw Ed Lazor F...
Legal Brief:
A substantial jury verdict of $31.8 million was entered against KPMG in this case which was brought in the Superior Court of New Jersey, Middlesex County. Plaintiffs, which included Cast Art Industries, LLC (“Cast Art”) and its shareholders, brought suit against KPMG, as an auditor, for failing to detect fraudulent misstatements
Published on October 04, 2010
American Bar Association vs. Federal Trade Commission
Legal Brief:
The AICPA has a direct interest in the outcome of this litigation. The AICPA’s members, like attorneys, are engaged in a professional practice. Also, like attorneys, certified public accountants typically engage in invoiced billing of their clients, allowing their clients to pay for such services after
Published on September 30, 2010
Teachers Retirement System of Louisiana vs. PwC and Marc Kirschner vs. KPMG, et al
Legal Brief:
The Appellants in both cases seek to eviscerate – if not eliminate altogether – the imputation doctrine and the related defense of in pari delicto, long available to auditors and other professionals as a vital protection against claims asserted by or on behalf of companies whose senior managers intentionally defrauded
Published on September 14, 2010
Williamson v. PricewaterhouseCoopers LLP
Legal Brief:
Neither the Institute nor the New York State Society has an interest in the particular dispute between these litigants. However, because of their (1) extensive understanding of the accounting profession and, in particular, the role of an independent auditor, and (2) commitment to the public interest, the Institute and State Society are gravely concerned about the lower
Published on May 03, 2010
PricewaterhouseCoopers LLP v. Division of Medical Assistance and Health Services
Legal Brief:
The AICPA and the NJSCPAs respectfully submit this brief as amici curiae in support of PricewaterhouseCoopers LLP's Motion to Dismiss. Amici request that the motion to dismiss be granted because permitting the Division of Medical Assistance and Health Services' claim against PwC would alter the existing standards of an accountant's
Published on April 26, 2010
Massachusetts Society of CPAs & AICPA in Support of KPMG Re Nycal
Legal Brief:
Massachusetts Society of CPAs & AICPA in Support of KPMG Re: Nycal
Published on April 14, 2010
T. Jeffrey Simpson and California State Teachers Retirement System v. Homestore.Com, Inc.
Legal Brief:
The Supreme Court’s decision in Central Bank holding that there is no private right of action for aiding and abetting a violation of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5, is of tremendous importance to the
Published on April 14, 2010
Tellabs Inc. v. Makor Issues & Rights, Ltd.
Legal Brief:
The present case concerns the pleadings standards established by the Private Securities Litigation Reform Act of 1995 (PSLRA). In the PSLRA, Congress required securities-fraud plaintiffs to plead particularized facts leading to a "strong inference" that each defendant acted, or failed to act, with the requisite "scienter" - the culpable mental state
Published on April 14, 2010
Grant Thornton LLP v. Prospect High Income Fund
Legal Brief:
Because of their (1) extensive understanding of the accounting profession and, in particular, the role of an independent auditor, and (2) commitment to the public interest, the Texas Society of CPAs and the American Institute of CPAs are deeply concerned about the court of appeals' decision in this case inasmuch as it threatens
Published on April 14, 2010
Grafton Partners L.P. v. The Superior Court of Alameda County, Respondent, PricewaterhouseCoopers LLP, Real Party in Int...
Legal Brief:
This brief addresses the issue presented for review: whether predispute jury waivers - i.e., provisions in contracts in which the parties agree to advance not to demand a jury trial in any action that may arise out of their contract - are enforceable between commercial parties in civil actions under California law.
Published on April 09, 2010
Dura Pharmaceuticals, Inc. v. Michael Broudo
Legal Brief:
The AICPA has a strong interest in judicial decisions affecting the scope and bases of accountants' liability under the federal securities laws. The present case is of paramount importance to the accounting profession. Loss causation is an indispensable element of the private action available under Section 10(b) of the Securities Exchange Act of 1934, one that helps
Published on April 09, 2010
John P. Crowley v. Doris June Chait
Legal Brief:
Because of the Institute's historical role particularly in formulating standards relating to audits, reviews, and compilations, and the reports issued thereon, the AICPA has maintained a strong interest in the scope and bases of civil liability sought to be imposed upon auditors pursuant to those standards. The Institute has no
Published on April 09, 2010