Accountants' Liability Litigation

We have litigated on behalf of institutional plaintiffs against the major accounting firms in cases involving alleged accounting and auditing failures. In cases involving financial fraud, we are experienced in analyzing accountants' workpapers and finding "red flags" the auditors disregarded. Our representations have included:

• Major institutional investors in a $200 million case against Coopers & Lybrand (now PricewaterhouseCoopers) that arose from the bankruptcy of the Phar-Mor drugstore chain. In that multidistrict litigation, based in Pittsburgh, our firm took the lead role for the numerous institutional plaintiffs in deposing the Coopers auditors and in preparing the case for trial. Our clients' case settled after the jury was selected.

• The receiver of Philip Services Corp., a Canadian metals processing and environmental services company, as well as a syndicate of its lenders, in connection with claims in the hundreds of millions of dollars against Deloitte & Touche.

• Institutional investors in a $30 million action against KPMG arising out of its audits of the now-bankrupt Sharp International Corp.

• The committee of debentureholders in actions against KPMG alleging auditing and other failures in connection with the bankruptcy of Bramalea Inc., a large Canadian real estate company.

• A multinational company in connection with a $40 million claim against PricewaterhouseCoopers arising out of an acquisition.