Accounting Firm's Professional Liability Lawsuit Dismissed

Obtained a dismissal with prejudice of a multi-million-dollar lawsuit in the Philadelphia Court of Common Pleas against our client, a large, regional accounting firm. The claims arose from our client’s auditing and SEC-reporting work on behalf of a Texas financial firm in relation to what turned out to be an organized-crime scheme to siphon millions of dollars from the firm. The plaintiff was the lawyer for the mob-controlled entities whose sales facilitated the looting. Although he was ultimately indicted and sued by a Texas Bankruptcy Trustee over his role in the scheme, he prevailed in both matters. He then sued our client, claiming he never would have been targeted by the Bankruptcy Trustee or the federal government but for our client’s misrepresentations and negligence. Terry, Greg and Sarah filed preliminary objections based on the expiration of the statute of limitations. Although the plaintiff objected to raising the statute of limitations in preliminary objections, the court found that such objections were mooted or waived when the plaintiff subsequently responded to the statute of limitations arguments and that, regardless of the plaintiff’s objections, it was proper to determine the statute of limitations on preliminary objections because the plaintiff affirmatively put the statute of limitations at issue by arguing application of tolling doctrines.