GH&C Successfully Represents New Jersey Accounting Firm Before The Third Circuit And Obtains Dismissal Of Case With Prejudice Based On Plaintiff’s Failure To File An Affidavit of Merit

May 19, 2014 | No Comments
Posted by Michael Canning

Giordano, Halleran & Ciesla, on behalf of its client, a New Jersey accounting firm, was recently successful in obtaining the affirmance of the dismissal of a complex professional malpractice action from the United States Court of Appeals for the Third Circuit. The litigation stemmed from a lender’s issuance of a $10 million loan to a New Jersey hospital. Prior to the closing of the loan, the hospital provided the plaintiff with a copy of an audit report prepared by the accounting firm for the hospital without the consent or the knowledge of the accounting firm. Shortly after the loan was issued, the hospital filed a Chapter 11 bankruptcy petition. In addition to asserting a claim against the hospital in the bankruptcy proceedings, in December 2008 the lender commenced an action against the accounting firm, claiming that there were misrepresentations in the audit report, which was allegedly relied upon by the plaintiff when it provided the loan. The lender filed its lawsuit in the United States District Court for the District of New Jersey based on diversity of citizenship of the parties.

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