NCP LITIGATION TRUST v. KPMG LLP


901 A.2d 871 (2006)

187 N.J. 353

NCP LITIGATION TRUST, Plaintiff-Respondent, v. KPMG LLP, Defendant-Appellant.

Supreme Court of New Jersey.

Decided June 28, 2006.


Attorney(s) appearing for the Case

Mitchell A. Karlan, a member of the New York bar, New York City, argued the cause for appellant (Drinker Biddle & Reath, Princeton, attorneys; Mr. Karlan, Vincent E. Gentile and Karen A. Denys, Princeton, on the briefs).

James G. Flynn, a member of the New York bar, New York City, argued the cause for respondent (Lite DePalma Greenberg & Rivas, attorneys; Allyn Z. Lite and Katrina Blumenkrants, Newark, on the brief).

Richard I. Miller, a member of the New York bar, argued the cause for amici curiae, The American Institute of Certified Public Accountants and The New Jersey Society of Certified Public Accountants (Riker, Danzig, Scherer, Hyland & Perretti, attorneys; Mr. Miller and Michael K. Furey, of counsel; Mr. Furey and Michael E. Gogal, Morristown, on the brief).


Justice ZAZZALI delivered the opinion of the Court.

In the mid-1990s, two officers of a corporation intentionally misrepresented details concerning the corporation's financial status to an independent auditing firm. That firm in turn failed to detect those misrepresentations for several years. After subsequent audits revealed the officers' fraud, the corporation was forced to acknowledge previously unreported losses of tens of millions of dollars and to declare bankruptcy...

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