Business Busts Pose Risk for Lawyers, Accountants

• Posted by Law.com on April 23rd, 2008


• Filed in Risk Management & Compliance

The past decade has seen a significant rise in lawsuits brought by bankruptcy trustees or receivers against an insolvent company’s former accountants and attorneys. Attorneys Rene D. Harrod and John D. Eaton review a sample of such actions and consider how courts and litigants are responding to them — including the in pari delicto doctrine against plaintiffs recovering for their own wrongdoing, and the mixed reviews being given to “deepening insolvency” as a cause of action.

Business Busts Pose Risk for Lawyers, Accountants