Cornerstone Research was retained to support two experts on behalf of a national accounting firm against claims of professional malpractice and breach of contract before a three-arbitrator panel.
Retained by Latham & Watkins
Cornerstone Research was retained to support two experts on behalf of a national accounting firm against claims of professional malpractice and breach of contract before a three-arbitrator panel. Professor Christopher James of the University of Florida addressed damages issues, and A. Sami Siddiqui, formerly a senior executive of Citigroup, assessed industry developments.
In a unanimous decision following an eight-day hearing, the arbitration panel rejected the entire “lost value” damages claim.
The claimant, the trustee of a bankrupt financial institution, alleged that the auditors’ failure to conduct a proper audit and quarterly reviews caused regulators to take actions that triggered the collapse of the company, resulting in nearly $500 million in damages reflecting the “lost value” of the business.
In a unanimous decision following an eight-day hearing, the arbitration panel rejected the entire “lost value” damages claim, finding that the alleged audit failures had not caused any harm and that no measure of “lost value” had been proven.
