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In a Clear Victory for Institutional Investor, Court Finds U.S. Accounting Firm and its International Organization can be Held Liable for Audits Conducted by Foreign Affiliates

Stuart M. Grant and James J. Sabella

In a January 27, 2009 decision in In re Parmalat Securities Litigation, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York addressed the issue of whether a U.S. accounting firm and the international organization of which it is a member can be held liable for securities violations committed by a member firm practicing in another country…
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