Accountants’ Common Law Negligence Liability to Third Parties
Although the statutory liability of accountants to third parties under the federal securities laws is fairly clear, the scope of accountants’ common law negligence liability varies greatly among the states. This article begins by discussing the historical background of accountants’ common law liability for negligence. The article then presents the recent judicial decisions and rationales for their limitations on accountants’ third party liability. Finally, the article summarizes and analyzes the various judicial positions and supports the application of a traditional proximate causation philosophy to accountants’ negligence liability.
Volume 2015 | Issue 2
A selection from our current issue.
- Congress Killed the Radio Star: Revisiting the Terrestrial Radio Sound Recording Exemption in 2015
by Melanie Jolson
- A Safe Harbor from Spoliation Sanctions: Can an Amended Federal Rule of Civil Procedure 37(e) Protect Producing Parties?
by Alexander Nourse Gross
- Death and Live Feeds: Privacy Protection in Fiduciary Access to Digital Assets
by Jeehyeon (Jenny) Lee
- The Data Security Governance Conundrum: Practical Solutions and Best Practices for the Boardroom and the C-Suite
by Thad A. Davis, Michael Li-Ming Wong & Nicola M. Paterson
- Law in Regression? Impacts of Quantitative Research on Law and Regulation
by David C. Donald
- Preparing Financial Regulation for the Second Machine Age: The Need for Oversight of Digital Intermediaries in the Futures Markets
by Gregory Scopino