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 2014 | Issue 2
A selection from our current issue.
- Responsible Shares and Shared Responsibility: In Defense of Responsible Corporate Officer Liability
by Amy J. Sepinwall
- Money Market Funds Run Risk: Will Floating Net Asset Value Fix the Problem?
by Jeffrey N. Gordon and Christopher M. Gandia
- Deterring Discovery-Driven Data Deletion
by Daniel Long Sockwell
- Value-Add: An Empirical Study of Idiosyncratic Value in the 2013 Biotech IPO Market
by Lee D. Cooper
- Necessity is the Mother of Invention: A Renewed Call to Engage the SEC on Social Disclosure
by Alexandra Leavy
- Protecting the Public in Public-Private Partnerships: Strategies for Ensuring Adaptability in Concession Contracts
by Kelsey Hogan