Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Second Circuit Review: Auditor Fails to Plead Primary Violation, Loss Causation
February 28, 2007 Full PDF
Litigation partners Marty Flumenbaum and Brad Karp's "Second Circuit Review" column appeared in the February 28 issue of the New York Law Journal. The article, "Auditor Fails to Plead Primary Violation, Loss Causation," reports on a significant decision affirming the dismissal of securities fraud claims against a "Big Four" auditing firm. In Lattanzio v. Deloitte & Touche LLP, the court held that "to state a claim against an issuer's accountant, a plaintiff must allege a misstatement that is attributed to the accountant 'at the time of its dissemination,' and cannot rely on the accountant's alleged assistance in the drafting or compilation of a filing." The authors anticipate that this ruling will substantially benefit defendants, especially in the Second Circuit, facing securities fraud claims. Litigation associate John Vagelatos assisted in the preparation of this column.