Accounting Malpractice
Reid Collins is a national leader in prosecuting accounting malpractice claims arising from complex financial frauds. When auditors abandon their role as gatekeepers—missing red flags, blessing false financials, or omitting required disclosures—we hold them accountable. Having pursued claims against each of the Big Four and most of the nation's other leading accounting firms, we know how to dismantle their defenses and recover for our clients.
Our team includes former accountants and financial professionals who understand intricate financial statements, audit protocols, and damages modeling. We use that fluency to build claims anchored in rigorous analysis—and to defeat common defenses, including the in pari delicto doctrine and the contractual limitations buried in engagement letters.
We pursue claims with damages that approach or exceed nine figures. Many involve international dimensions: cross-border transactions, overseas affiliates, and global asset recovery. And we deliver results for bankruptcy trustees, offshore liquidators, hedge funds, and institutional investors who need more than conventional lawyering.
As financial reporting grows more complex—with evolving governance structures, fintech disruption, and emerging technologies—our practice continues to expand into new areas of audit failure litigation. For example, we are actively pursuing claims against auditors related to the recent wave of failed de-SPAC transactions.
Most of our audit malpractice matters resolve confidentially, often before a complaint is even filed. The dollar figures below reflect the scale of claims we pursue:
- $300 million claim against a regional auditor arising from fraudulent inventory reporting and insufficient disclosures for related-party transactions.
- $125 million claim against an audit firm acquired by a Big Four auditor, where the financial statements misvalued an investment portfolio.
- $100 million-plus claim against two national auditors on behalf of defunct investment funds and an investor arising from improper calculations of assets under management, undisclosed related-party transactions, and misuse of investor funds.
- $100 million claim against a national auditor arising from fraudulent valuations of investment assets.
- $90 million claim against a national auditor arising from an undisclosed capital deficit for an insurance service provider.
- $60 million claim against a Big Four auditor arising from overstated assets that led to the collapse of a financial institution.
- $50 million claim against a Big Four auditor arising from overstated assets and undisclosed related-party transactions involving healthcare joint ventures.
Auditors serve as a check on management’s misstatements and promote integrity of the markets. When auditors fail, we make them answer for it.