Accountant Malpractice and the NJ Rule

Imputation Doctrine No Longer Shields Negligent Auditors
Shareholders may sue accountants for negligent failure to detect fraud

Stephen V. Falanga
New Jersey Law Journal
August 30, 2006


"The New Jersey Supreme Court's decision in NCP Litigation Trust v. KPMG, LLP, may dramatically affect the relationship between corporations and their outside auditors. The case, decided June 28, altered the legal landscape in New Jersey by holding that shareholders of defunct corporations may now pursue third party actions against the company's accountants for negligent failure to detect fraud of corporate principals." Details

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