Bank of America v. Deloitte & Touche

Description

Bank of America sought to hold Deloitte accountable for negligent misrepresentation based on advice in auditing opinion letters provided to its client, which was one of the bank's customers. The loan in question was a $150M revolving credit line to DVI Financial Services, a subsidiary of the publicly traded company DVI. Trial was scheduled for February 22, 2010.

Deloitte audited the parent's (DVI's) consolidated financial statement, but not the statements of the subsidiary DVI Financial Services, which received the loan. In any case, Deloitte claimed that it would only be providing an opinion as to the presentation of the information, but the information itself is the responsibility of management. According to the Deloitte, the plaintiff bank was trying to be bailed out of a loan that it mismanaged.

The bank asserted that Pennsylvania law would require professional information providers such as auditors and accountants to be held responsible for negligent errors that would foreseeably be relied upon by third parties.

The court took the summary judgment motion under advisement.

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