Recent Court Decisions

In Reves vs. Ernst & Young, a farming cooperative filed for bankruptcy, and the bankruptcy trustee brought a civil suit against its accounting firm under the Racketeer Influenced and Corrupt Organizational Act (RICO). The plaintiff alleged that the accounting firm performed activities relating t...

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Bibliographic Details
Published in:The Journal of risk and insurance 1993-06, Vol.60 (2), p.321-325
Main Author: Maroney, Patrick F.
Format: Article
Language:English
Subjects:
Accountants liability
Accounting firms
Acquired immune deficiency syndrome
AIDS
Attorneys
Bankruptcy
Court decisions
District courts
Employee benefits
Employers
ERISA
Evidence
FDA approval
Federal court decisions
Financial statements
From the Library Shelf
Health care
Insurance claims
Insurance industry
Products liability
Provisions
Racketeering
Retirement income
RICO 1970-US
State court decisions
Workers compensation
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Summary:In Reves vs. Ernst & Young, a farming cooperative filed for bankruptcy, and the bankruptcy trustee brought a civil suit against its accounting firm under the Racketeer Influenced and Corrupt Organizational Act (RICO). The plaintiff alleged that the accounting firm performed activities relating to valuation of a gasohol plan on the financial statements and audits of the farming cooperative. The Supreme Court affirmed the district court and appellate court decisions, finding that there must be participation in the operation of management of the enterprise itself in order to be subject to liability under Section 1962(c) of 18 US Code (RICO). Other court decisions of interest to the insurance industry and to risk managers are discussed.
ISSN:0022-4367
1539-6975