Outside Vendors Can't Be Held Liable: U.S. Treasury

Law360, New York (June 20, 2007, 12:00 AM EDT) -- The Secretary of the United States Treasury on Wednesday said that he does not believe investors should be allowed to sue accountants, banks, lawyers and others who engage in sham deals that are aided by a company's accounting fraud.

“What concerned me was exposing a wide range of individuals who happen to do business with public companies to primary liability without bright lines,” Secretary Henry Paulson said in testimony before the House of Representatives Financial Services Committee, according to Dow Jones News.

A spokeswoman for the...
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