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Overview | Representative Matters
Overview
V&E; has extensive experience representing major accounting firms as well as regional and local accounting firms in litigation. We have defended our accounting firm clients against charges of malpractice, RICO violations, common law fraud and negligent misrepresentation, deceptive trade practices, federal and state law securities fraud, ERISA violations, and civil conspiracy, including conspiracy to breach fiduciary duties and to violate numerous laws, including the federal and state securities laws.
We have also vigorously pursued counterclaims on behalf of our accounting firm clients in appropriate cases, in one instance achieving a substantial recovery for the filing of a frivolous lawsuit against our accounting firm client.
V&E;'s representation of accounting firms typically involves cases raising sophisticated financial, accounting, auditing, consulting and tax issues. Our lawyers are well-versed in an accountant's duties; the impact of Sarbanes-Oxley on accountants; measures of damages; comparative fault; the consulting work of accountants related to automated financial systems; choice of law between various states and between the United States and other foreign jurisdictions; the Texas Deceptive Trade Practice Act and its application to accountants; fiduciary duties; detection and disclosure of illegal acts, errors, and irregularities; auditor independence; staffing and supervision; internal controls; conflicts of interest; related-party transactions; regulatory accounting principles; resignation of an auditor and the withdrawal of audit opinions; and general audit questions concerning the role of the auditor and the comparative duties of management.
We also have extensive experience representing accounting firms in response to subpoenas, requests for documents, and depositions where the accounting firm was not a party to the litigation.
Finally, we have represented our accounting firm clients before the State Board of Public Accountants and the Securities and Exchange Commission in response to informal and formal investigations. We are extremely familiar with the Public Company Accounting Oversight Board, its members and its implications on accountants.
Representative Matters
The following illustrates some of our experience. Results of course depend upon the facts of each case.
- Currently represent a major accounting firm in a securities fraud class action involving claims that the auditor failed to adequately audit its client's financial statements.
- Currently represent a major accounting firm in a malpractice case involving claims that the auditors conspired with company management to hide the financial condition of a finance company from the company's directors. The Plaintiffs sought $300 million in damages. This case was recently tried to a jury in Dallas for three weeks, where V&E; obtained a take-nothing verdict for our client.
- Currently represent a major accounting firm in a professional negligence and securities fraud action brought by 700 investors arising out of the provision of tax consulting services to a foreign currency trading company which ultimately lost $34 million of investments. Two law firms sued in the same case settled for $22 million and $8.5 million. Our client recently settled for a small fraction of those amounts - less than $800,000; and an investigation by the Texas State Board of Public Accountancy was terminated for "lack of evidence."
- Currently represent a major accounting firm in a suit arising out of that firm's resignation as the plaintiff's auditor and withdrawal of its prior audit opinions. The plaintiff alleges that the accounting firm's actions caused its bankruptcy and amount to fraud, deceptive trade practices, negligent misrepresentation, and a breach of a fiduciary duty and seeks damages in excess of $30 million.
- Currently represent a major accounting firm in three suits arising out the merger of two large deathcare providers. The plaintiffs, former officers and directors of one of the merged companies, allege that the accounting firm committed securities fraud and engaged in a conspiracy to defraud them by failing to disclose certain financial information about the other party to the merger, information that the plaintiff claims would have killed the merger. Plaintiffs seek damages in excess of $20 million.
- Currently represent a major accounting firm in a malpractice suit brought by a mining company where the company alleges that the auditor wrongfully resigned from the audit engagement, causing the company's securities offering to fail.
- Represented a major accounting firm in defense of claims that it violated ERISA while providing advisory services to an insurance company in receivership. V&E; obtained dismissal in federal court which has been upheld on appeal.
- Represented a major accounting firm against conspiracy, fraud and negligence claims totaling over $200 million, arising out of the failure of two insurance companies; V&E; obtained dismissal with prejudice of all claims against the accounting firm.
- Represented an accounting firm in a federal securities class action against the officers, directors, and accountants for a company in which plaintiffs sought damages of $100 million; the trial court dismissed all claims with prejudice and was subsequently affirmed by the Fifth Circuit.
- Represented an accounting firm in a conspiracy, breach of fiduciary duty, and $20 million malpractice claim in which there were 22 defendants and 18 defense lawyers; obtained summary judgment on the intentional torts and settled the malpractice claims; thereafter, represented the client in an action by the Texas State Board of Public Accountancy which was settled with the client only being admonished, not sanctioned.
- Represented a major accounting firm in an action in which summary judgment was obtained and affirmed by the Houston Court of Appeals that a golden parachute agreement was not community property in Texas.
- Represented a major accounting firm in a malpractice suit over the installation of an SAP-based software system for an oil and gas company, which was settled on favorable basis for client.
- Represented a major accounting firm in a suit where the plaintiffs claimed that they were induced by the accounting firm to place their businesses and affairs in trusts, which resulted in adverse tax consequences to plaintiffs. The causes of action included fraud, negligent misrepresentation, breach of fiduciary duty, and violations of the deceptive trade practices; plaintiffs sought several million dollars in damages. All claims were dismissed.
- Represented an accounting firm against claims of negligence and fraud arising from the sale of an electronics wholesaler, which was settled.
- Represented an accounting firm against claims of accountant malpractice arising from the purchase of a mortgage portfolio and subservicing agreement in New England, which was settled.
- Represented an accounting firm against claims of negligence and violations of the Texas Deceptive Trade Practices Act arising out of the purchase of stock of a textile sample company, which was settled.
- Represented an accounting firm against claims of negligence, breach of fiduciary duty, fraud, and negligent misrepresentation arising out of the purchase of a manufacturing facility in Iowa, which was settled.
- Represented an accounting firm against claims of malpractice and fraud in connection with its tax work for a company in Buenos Aires, Argentina, which was settled.
- Represented an accounting firm in connection with the claimed mishandling of trust assets and accounting malpractice, which was settled.
- Represented an accounting firm against claims of malpractice arising from the sale of four companies, which was settled.
- Represented an accounting firm before the Texas State Board of Public Accountancy in connection with the audit work done which was resolved favorably for our client.
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