Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In pari delicto is one of the bedrock principles of common law: You can’t blame someone else for wrongdoing if you’re equally at fault. On the civil side that usually means that fraud participants — like, say, corporations — can’t sue the lawyers, accountants and bankers who abetted corporate malfeasance.

Or can they? That’s the intriguing possibility that remains alive for the Refco Litigation Trust after a Dec. 23 ruling (pdf) by the 2nd U.S. Circuit Court of Appeals. The appellate panel asked the New York Court of Appeals to clarify what it called “considerable uncertainty” about an exception to the New York state law codifying in pari delicto. Depending on what the state high court does with the 2nd Circuit’s referral, the Refco trustee may be able to proceed with a case against Mayer Brown, Grant Thornton, KPMG, PricewaterhouseCoopers and several banks.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.