Accountant Liability Litigation

Members of the accounting profession are subjected to increasing scrutiny by legislators, courts and regulators. Effective lawyers in accountant and auditor-related matters must understand all dimensions of the regulatory and civil liability environment to develop a creative approach to obtaining optimal results in this dynamic area of law.

Our accountant liability litigation group has a broad range and depth of experience in representing the full spectrum of accounting firms, as well as individuals, in accountant-related litigation. We have a proven track record in advocating for clients in class actions, securities fraud cases, negligence and malpractice actions, regulatory investigations and prosecutions, and complex corporate litigation matters involving accountants. Our accountant liability lawyers not only know the law, professional standards, and accounting concepts that frequently arise in litigation, but also how best to present and defend the work of accounting professionals to judges, arbitrators, regulators and the public.

As experienced trial lawyers in accountant liability matters, we work with our clients to understand their business objectives and develop a cost-effective strategic plan to achieve the desired results efficiently and effectively.

Significant Mandates Include:

Auditor Negligence Claims

• Sino-Forest: Representing Sino-Forest Corporation in shareholder litigation including against Ernst & Young, wherein the largest auditor settlement payment in Canadian history was made
• Buckingham Securities: Representing Miller Bernstein in class proceedings relating to the collapse of Buckingham Securities

Fraud Claims Involving Auditors

• Representation of major Canadian financial institution in fraud recovery matter against two separate auditing firms arising from audit of companies engaged in a multi-million dollar cheque-kiting scheme

Auditor Regulatory Proceedings

• Partner at Deloitte & Touche LLP: In successfully defending regulatory proceedings relating to the audit of Livent Inc.
• Partner at Deloitte - Representation relating to disciplinary proceedings by the Chartered Professional Accountants of Ontario
• Partner at Deloitte & Touche LLP: Representation relating to investigation into motor vehicle insurance report prepared in Alberta

Miscellaneous Accountant / Auditor Litigation

• Ivaco (Re): Challenge to KPMG's working capital calculations
• Coopers and Lybrand: In connection with a Bulk Sales Act exemption proceeding brought by RSM Richter in connection with Castor Holdings
• Multiple Big Four and other national auditing firms providing general counsel advice (employment matters, waivers, collection matters, etc.)
• Successful defence of individual Chartered Accountant in Alberta Securities Commission proceeding involving allegations of insider trading and in a related investigation by the Alberta Institute of Chartered Accountants
• Proprietary Industries Inc: representation in various litigation arising from allegations its former President and Chief Financial Officer misappropriated funds and misstated financial statements. Included representation of PPI before the ASC in relation to allegations respecting the financial statements and coordinating parallel litigation against PPI's former auditors respecting previous financial statements

Regulator Representation

• Institute of Chartered Accountants of Alberta: representation of institute in relation to commercial insurance dispute