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CENCO INC. v. SEIDMAN & SEIDMAN

Nos. 81-2126, 81-2264.

686 F.2d 449 (1982)

CENCO INCORPORATED, Cross-Claimant-Appellant, Cross-Defendant-Appellee, v. SEIDMAN & SEIDMAN, Cross-Defendant-Appellee, Cross-Claimant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided March 26, 1982.

Certiorari Denied October 4, 1982.

Attorney(s) appearing for the Case

Fred H. Bartlit, Jr., Kirkland & Ellis, Chicago, Ill., for Cenco Inc.

Samuel Weisbard, McDermott, Will & Emery, Chicago, Ill., for Seidman & Seidman.

Before BAUER, WOOD and POSNER, Circuit Judges.

Certiorari Denied October 4, 1982. See 103 S.Ct. 177.

POSNER, Circuit Judge.

We consider in this case the standards under the common law of Illinois governing the liability of independent auditors for failing to detect fraud by the management of the company audited; the standing of auditors under the RICO statute (Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961 et seq.) to sue such a company for damages; and —...

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