BDO Denied Chance to Press Auditor Liability at High Court (1)

The US Supreme Court on Monday denied a petition from BDO USA P.C. to determine the circumstances under which accounting firms can be held liable for shoddy audits.

BDO sought to overturn a ruling from the US Court of Appeals for the Second Circuit that found that auditor missteps could sway investor decisions, meaning the firm should face shareholder fraud claims over its botched audits for insurer AmTrust Financial Services Inc.

The case was among a batch of petitions the high court rejected as it begins a new term, according to orders the court released Monday.

At issue is whether ...