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Of Counsel |
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Eisenman v. Ernst
& Young, Rhode Island Superior Court; Rhode Island Supreme Court
The
firm represented sixteen investors who sued Ernst & Young for millions of
dollars of losses suffered as the result of the alleged negligent and
fraudulent preparation of financial forecasts for six limited partnerships.
The sixteen investors, who resided across the country, had lost their entire
investments in a series of related limited partnerships. A Principal at
Arthur Young had surreptitiously taken several hundred thousand dollars of
payments from the general partner of the limited partnerships as commissions
for steering Arthur Young clients to invest in these partnerships. The same
Principal had been responsible for preparing financial forecasts which
overlooked financing difficulties for the partnerships. The case was
vigorously defended by Ernst & Young, as the events being challenged were
almost ten years old at the time that the complaint was filed, legal issues
existed as to whose state’s statute of limitation should be applied, and the
defendants potentially owed 150% interest in a case where potential damages
prior to interest was close to $2 million dollars. The firm successfully
defeated a Motion to Dismiss, a Motion for Summary Judgment and a Petition to
the Rhode Island Supreme Court for Certiorari to decide certain legal issues
prior to trial. After four years of discovery, the case settled several weeks
prior to the beginning of trial. If you believe you are involved in a dispute which may need to be litigated, please contact Mr. Schultz directly by phone or by e-mail at sschultz@engelschultz.com. Engel & Schultz, LLP ©
2006 Engel & Schultz, LLP |
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