E.C. Seeks To Limit Auditors' Liability

Law360, New York (January 18, 2007, 12:00 AM EST) -- The European Commission is seeking public comment on financial auditors’ liability, a move prompted by the growing risk of litigation and dearth of available insurance for auditors.

The largest accounting firms—identified by the Commission as KPMG, Deloitte Touche Tohmatsu, PricewaterhouseCoopers and Ernst & Young—are facing “a real danger” of being hit with a lawsuit that could drive one or more of them out of business, according to the E.C.’s Internal Market and Services Commissioner Charlie McCreevey.

The Commission proposed four possible ways of dealing with the...
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