AHERF Ruling: Limitation Of Imputation For Auditors
June 18, 2010, 3:50 PM EDT
Law360, New York (June 18, 2010, 3:50 PM EDT) -- The Pennsylvania Supreme Court has held that the imputation defense is unavailable to a corporation’s outside auditor who is alleged to have knowingly and actively assisted the corporation’s managers to render fraudulent financial reports. Official Committee of Unsecured Creditors of Allegheny Health Education and Research Foundation v. PricewaterhouseCoopers LLP (Feb. 16, 2010) (AHERF).
The decision is not altogether bad news for the auditor defense bar because it also holds that Pennsylvania law continues to allow the auditor to assert the imputation defense to claims of simple...