Case Overview
This is a professional negligence case against a large auditing firm. The defendant firm was performing the audits for a regional medical insurance firm in southern Texas. According to the relevant laws, insurance companies are required to maintain a certain amount of liquidity. It was alleged that the auditing firm was approving transactions off of the balance sheet that made non-cash assets look like cash. As a result of this, an eventual investigation into the insurance company’s financials led the firm, which had 50,000+ members, to fold within a month.
