Lenders’ misrepresentation claim against auditor summarily dismissed
In the latest chapter in an almost 20-year-old saga involving Philip Services Corp. (“Philip”) and an accounting fraud uncovered in 1998, Ontario Superior Court Justice Perell summarily dismissed a negligent misrepresentation claim brought against Philip’s auditor, Deloitte & Touche (“Deloitte”).[1] In dismissing the claim last December, Justice Perell reaffirmed the longstanding principle established by the Supreme Court of Canada in Hercules v. Ernst & Young[2] that, as a general rule, auditors do not owe a duty of care to third parties such as investors, lenders, creditors or suppliers of the companies they audit. As expressed by the Supreme Court of ... [more]
Competition Bureau Documents Privileged from Disclosure to Plaintiffs
Curtains for auditor’s arguments at the Court of Appeal in Livent case
Livent Inc. (“Livent”) has prevailed at the Court of Appeal in its auditor’s negligence claim against Deloitte & Touche (“Deloitte”) concerning Deloitte’s failure to detect an accounting fraud carried out by Livent’s senior management. In the result, the trial judge’s $84,750,000.00 damage award (plus interest) was upheld. [more]
Copycat class actions criticized
After the Storm: only CIBC and IMAX class actions survive
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