Litigation

Accounting Firm Defense

We have broad experience in representing accounting firms in state and federal courts throughout the United States in the defense of a variety of types of litigation matters arising out of alleged misstatements in financial statements of the accounting firm’s client, including:

  • Professional negligence/malpractice actions brought by audit clients, shareholders of public companies, purchasers, lenders, trustees, and bankruptcy trustees
  • Shareholder class actions alleging securities fraud
  • Shareholder derivative actions
  • Defamation actions brought by officers, directors or employees of the accounting firm’s client based on statements made by the firm in reports to the United States Securities and Exchange Commission
  • State boards of accountancy investigations and disciplinary actions
  • Regulatory investigations and disciplinary actions, including those initiated by the United States Securities and Exchange Commission
  • Response to subpoenas for records or testimony, including grand jury subpoenas
  • Alternate dispute resolution engagements for the purpose of negotiating settlements of pending or threatened actions against the accounting firm

Our experience has included jury and non-jury trials completed to verdict in a number of cases and with a broad array of types of auditing and accounting issues, including issues concerning claims reserves, percentage-of completion revenue recognition, inventory, inventory in transit/prepaid inventory, capitalization and deferral of costs, gains on sales of securitized real estate interests, related party transactions, software development costs, and revenue overstatement. The names of the parties and courts in which these cases were litigated are available upon request.