Texas Court Limits Nonclient Liability For Auditors

Law360, New York (July 7, 2010, 5:25 PM EDT) -- In a victory for accounting firm Grant Thornton LLP, the Texas Supreme Court has ruled the law does not impose on auditors an obligation to provide an accurate accounting to anyone who reads and relies upon an audit report.

Four investment funds managed by Highland Capital Management LP were not clients of Grant Thornton or known investors, so they may not bring claims against the firm, the Texas Supreme Court ruled Friday.

Highland funds that bought bonds from time-share operator Epic Resorts LLC sued Grant Thornton...
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