Securities Fraud/Conspiracy to Defraud
An accounting firm was hit with three lawsuits stemming from the merger of two companies. The claimants were former directors and officers of one of the merged companies, who alleged the accounting firm committed securities fraud and engaged in conspiracy to defraud. The lawsuits stated the firm failed to disclose certain financial information about the other party to the merger, information that would have stopped the merger. Damages in excess of $20 million are being sought.