WMJ Secures Dismissal with Prejudice in Two Multi-Million Dollar Accountant Malpractice Cases

Posted: 07/02/2012 | Share This Post

Thomas F. Falkenberg and Kirstin B. Ives recently secured dismissals with prejudice in two separate accountant malpractice cases.

In Bank of America v. Knight, et al. in the United States District Court for the Northern District of Illinois, the plaintiff bank claimed that auditors for entities that the bank loaned money to should have alerted the bank to alleged poor financial condition of such entities and sought over $35 million in damages. The court held that the bank, as a third party to the auditor-client relationship, did not allege sufficient facts permitting the bank to sue the auditors under the Illinois Public Accounting Act, 735 ILCS 5/13-214.2(a) and dismissed the bank’s claim with prejudice.

In Moser v. Scanlon & Mathews in the Circuit Court of Cook County, the plaintiff shareholders of a bank alleged that the bank’s auditors failed to inform the shareholders of certain insider loans and misrepresented the financial position of the bank and sought in excess of $10 million. The court held that the shareholders lacked standing to pursue their claims against the auditors and dismissed the bank’s claim with prejudice.