Attorneys

• Larry K. Elliott
• Richard R. Nelson, II

PITTSBURGH, PA - Cohen & Grigsby, P.C., a Pittsburgh-based law firm, announced today it has obtained a judgment in favor of its client Grant Thornton in a major lawsuit filed against the accounting firm by Carnegie International Corporation in Baltimore, Maryland.  Carnegie International had alleged accounting fraud and claimed damages of more than $2 billion.

The case went to trial for five weeks in March/April 2003.  On Wednesday, April 6, 2005, the court issued its findings in favor of Grant Thornton on all counts.  The court concluded that Grant Thornton was not negligent or fraudulent and that Carnegie had not proved it suffered damages from Grant Thornton’s actions.

According to the court, "In summary, the plaintiffs have failed to prove the elements of any of their claims against Grant Thornton. . . .The plaintiffs have also failed to prove any quantifiable damages as a result of the trading halt or that any action or omission of Grant Thornton's caused them damage.  Grant Thornton, on the other hand, has convincingly proven that Carnegie, by the misstatements and omissions of its management, representatives and agents, thwarted Grant Thornton's efforts to audit Carnegie's financial statements according to GAAP."
 

Chip Nelson and Larry Elliott of Cohen & Grigsby represented Grant Thornton in the case, helping the accounting firm demonstrate that Grant Thornton had identified significant discrepancies in accounting practices at Carnegie, and Grant Thornton took necessary and appropriate actions.   Subsequently, Carnegie terminated its relationship with Grant Thornton and sued the firm.

“We are extremely pleased to have represented Grant Thornton in their action, and in assisting them in proving that it did what was right, in spite of the threat of legal action from their client,” said Chip Nelson, Cohen & Grigsby’s lead counsel in the case.  “This is a victory for Grant Thornton and a victory for the accounting industry.”