Staggering Lawsuits Hit CPA Firms
2002 Year-in Review
It seems like every week in 2002 we reported on a firm being sued for improper audits of client financial records. While these suits have occurred regularly in the past, it is the size of these lawsuits that has captured the attention of the press and the public. In addition to the startling numbers originally discussed to settle the Enron case ($800 million at one point), the Big Five firms, national firms, and even H&R Block found themselves settling lawsuits to the tune of tens of millions of dollars this year. Insurance companies are scrambling to adjust to the new marketplace reality and professional liability insurance premiums are going nowhere but up as a result.
10/22/02 PwC Named in $100 Million Lawsuit
12/24/02 E&Y Slapped With $1 Billion Lawsuit