Diamond McCarthy has guided clients to effective outcomes in many large and highly complex professional liability cases. Our team of veteran trial lawyers investigates and prosecutes claims involving all types of malpractice and breach of fiduciary duties by auditors, lawyers and other professionals, including cases where they are actively complicit in fraudulent schemes that cripple a company or provide negligent advice and services that cause substantial financial ruin or losses.
Our team has litigated malpractice claims against global, national, regional and local professional services firms for over 20 years. We have an excellent reputation and track record in high-profile cases where egregious misconduct by professionals results in damages to a company that are often fatal. Our team regularly litigates malpractice claims against various professionals including accountants, auditors, law firms, consultants, financial advisors and others.
Professional Liability Claims in Bankruptcy and Insolvency Scenarios
Trustees, liquidators, creditors’ committees, corporations, CRO’s, financial entities, shareholders and other clients rely on Diamond McCarthy to resolve challenging litigation arising from large-scale corporate insolvencies and other financially-distressed situations. Our team has deep experience reconstructing the events that led to a company’s failure, identifying culpable parties and pursuing all available damages through asset recovery, negotiations and tenacious advocacy in the courtroom.
Investigating who and what killed the company is an extremely difficult and time-intensive process. Key witnesses have left the company and relocated, and critical evidence is either missing or scattered around the world. When our inquiry uncovers sophisticated Ponzi schemes or other unlawful activities, the company insiders and outsiders responsible have already gone to great lengths to cover their tracks and hide any ill-gotten gains.
Diamond McCarthy prosecutes claims against professionals that commit misdeeds and become entangled in these complex situations, including auditors and accountants, lawyers, asset and solvency valuation firms and banking professionals that advise on financial transactions, investments and valuations. We have handled cases involving virtually every type of misconduct by professionals that contributes to corporate insolvencies, including when they aid and abet officers and directors in illegal transactions, look the other way, are careless in failing to detect wrongdoing or provide negligent advice, opinions or services.
Audit and Accounting Malpractice
Diamond McCarthy is regularly involved in numerous high-stakes malpractice cases against audit and accounting firms of all sizes. Our lawyers have significant experience prosecuting claims arising from desk-top reviews, public and privately held company audits and special attest engagements performed on domestic and multi-national entities. We have resolved cases involving a variety of complex GAAP issues and GAAS failures in the United States, and under international standards in the U.K., Mexico, Italy, and China.
Our team is proficient in navigating difficult procedural and liability issues in audit and accounting malpractice cases, from battles over disputes of internal audit manuals and accountants’ internal GAAS/GAAP guidance to overcoming defenses such as in pari delicto and standing, contractual limitations on liability, contributory/comparative negligence and audit interference
What sets Diamond McCarthy apart from many firms is our multi-disciplinary approach to analyzing sophisticated accounting and financial transactions. We can customize our team to include lawyers that have backgrounds in substantive areas such as CPA’s, certified fraud examiners(?), Wall Street finance professionals (?),MBA’s and attorneys with business degrees in accounting and finance. We are fluent in the language of our accounting, financial and valuations, which allows us work as a team and create efficiencies, enhanced work product and value for our clients.
Throughout its history, Diamond McCarthy has prosecuted professional liability claims against law firms arising out of complex business matters. Our trial lawyers are well-versed in the “law of lawyering” across multiple U.S. jurisdictions, including the pertinent codes of professional conduct, conflicts of interest, standards of care, fiduciary duties, causation and other issues inherent to complicated malpractice cases.
Our practice is primarily focused on investigating and prosecuting legal malpractice claims within “who and what killed the company” cases. However, we also handle high-value disputes outside of insolvency scenarios when law firms commit negligence, breach their fiduciary duties or have conflicts of interest while representing clients in distinct litigation, transactional and advisory engagements.
Professional Liability Insurance Issues
Professional services firms maintain malpractice insurance to cover various liability claims, which may also include additional layers of protection above and beyond their primary coverage. We help clients resolve insurance issues that often arise in professional liability disputes, including determining the existence and scope of coverage, negotiating with insurance carriers and pursuing litigation when they refuse to settle valid claims.