Deloitte 'Faithless Fiduciary' Suit Gets Green Light

Law360, New York (April 8, 2009, 12:00 AM EDT) -- A Delaware judge on Wednesday refused to dismiss a “faithless fiduciary” case in which Deloitte LLP accused one of its former partners of concealing his securities trades involving companies being audited by the accounting firm.

Deloitte sued Thomas P. Flanagan in October in the Delaware Court of Chancery, claiming the longtime partner, who had risen to the level of vice chairman at the accounting firm, willfully violated the firm's conflict of interest policies by trading in securities of Deloitte's audit clients.

Flanagan's motion to dismiss, which...
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