Archive - 2016

1
CPAs’ Audit Report and Qualified Opinion Did Not Cause Company’s Or Investors’ Losses Where There Was No Evidence Of Reasonable Reliance
2
The Growing Threat of Automobile Cyber-Attacks
3
New Rules for Objections

CPAs’ Audit Report and Qualified Opinion Did Not Cause Company’s Or Investors’ Losses Where There Was No Evidence Of Reasonable Reliance

By: Kacey R. Riccomini
April 24, 2016

Accountants can breathe easier after Mosier v. Stonefield Josephson, Inc., CPAs (9th Cir., Feb. 23, 2016, No. 13-56453) 2016 WL 703104. Recently, the Ninth Circuit Court of Appeals, found that Stonefield, an accounting firm that was hired by PEMGroup and its related entities to audit financial statements, did not cause PEMGroup or its investors’ losses where there was no evidence the company or its investors actually or reasonably relied on the CPAs’ audit report, particularly when PEMGroup’s management defrauded investors and Stonefield issued qualified opinions of PEMGroup’s financial statements. Going forward, the Ninth Circuit’s decision will greatly impact professional liability suits against accountants, among others.

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The Growing Threat of Automobile Cyber-Attacks

By: Grace A. Nguyen and Alexandra R. Rambis
April 24, 2016

A number of breaches at high profile companies such as Target, Neiman Marcus, Home Depot and JP Morgan has pushed data security into the spotlight. Large companies, however, are not the only businesses susceptible to data breaches. Data security has now become a priority for the auto industry. While the technology in cars has become increasingly more sophisticated, it has also left automobiles vulnerable to the threat of cyber-attacks. In 2015, as an experiment, two researchers were able to hack into a Jeep Cherokee wirelessly.1 After hacking into the car, they were able to disable the car’s brakes, honk the horn, commandeer the steering wheel, turn off the car’s ignition, and could even track the car’s GPS coordinates and trace its route.

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New Rules for Objections

By: Craig A. Roeb and Chelsea Zwart
Published in the Los Angeles Daily Journal – Download Article
February 22, 2016

Only two months in, 2016 has already experienced significant changes to the California’s statutory and common law. Not to be left out, objections have received their fair share of attention from the Legislature and courts as well. As objections are often required to preserve future rights, being well-versed in the current laws governing them is an imperative for all litigators. This presents a brief overview of recent developments on the topic.

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