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Court: when accountants fail to detect fraud, in pari delicto no longer applies

By enacting M.G.L.c. 112, §87A 3/4, the Massachusetts Legislature intended to preempt the common-law doctrine of in pari delicto as it applies to the negligent conduct of accountants and auditors in failing to detect fraud, the state Supreme Judicial Court ruled July 9. In Chelsea Housing Authority v. McLaughlin, et al., the court ruled that, where a ...

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