Accounting Litigation

The attorneys and CPAs at Polsinelli Shughart PC have represented accountants, including major accounting firms, and clients adversely affected by accounting advice. Trying lawsuits, or even avoiding lawsuits, involving accounting requires clear communication and understanding about the scope of the accountant’s engagement, the responsibilities of management and the accountant, and the role accountants play, if any, in their relationship with those receiving the accountant’s work. Over many years we have built the experience and the results that our clients expect.

Our experience includes lawsuits, arbitrations and mediations, involving claims of:

  • Securities law class action and derivative claims involving securities laws
  • Internal fraud and the subsequent allocation of loss
  • Failures of audits, reviews and compilations
  • Negligent preparation of tax returns and tax planning
  • Negligent advice in the preparation of projections, forecasts and investment advice
  • Negligent advice about tax shelter strategies
  • Negligent advice on consulting engagements
  • Loss prevention through best practices and early assessment of risk
  • Enforcement of non-competition agreements and unfair competition

Often accounting litigation is focused on the questions of causation and damages. Our experience dealing with damage models and experts is an important part of accounting cases.

Notable Experience

  • Successful representation of investors adversely affected by defective tax shelter strategies.
  • Representation of Arthur Andersen in connection with the Baptist Foundation lawsuits.
  • Representation of National Accounting firm on lawsuits around the country relating to enforcement of non-competition agreements.
  • Dismissal of accounting firm from class action securities litigation.
Directed verdict for accountant. Cerra v. Kline, Jackson County (Missouri) Circuit Court.
Jury verdict for accountant affirmed on appeal. MidAmerican Bank v. Harrison, 851 S.W.2d 563 (Mo. App. W.D. 1993), in lender’s lawsuit to recover for negligent misrepresentation in audited financial statement
Summary judgment for accountant affirmed in audit case. Premier Bank v. Deloitte & Touche, LLP, Johnson County (Kansas) District Court.
Summary judgment for accountant affirmed, Rajala v. Donnelly Meiners Jordan Kline, P.C. 193 F.3d 925 (8th Cir. 1999), on claims of valuation errors.