Schein v. Ernst & Young

VERDICT

Trial
06/29/09 – 07/22/09

Subscribe Purchase DVD

Summary

3-week accounting fraud jury trial in Broward County Circuit Court's complex litigation division.

Plaintiffs Alan Schein and Result Technologies, Inc. brought the claim, alleging they were damaged by Ernst & Young's failure to conduct proper audits of Illinois-based Superior Bank F.S.B. The FDIC took control of Superior Bank in 2001 after declaring it insolvent.

The case calls into question consulting fees given by the banks to Ernst & Young.

The jury found that Ernst & Young was negligent and awarded damages of $16M ($6M to Result Technologies and $10M to Alan Schein).

From BNET News: "Feb. 8--Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank which totaled at least twice as much as the fees it received for its accounting services, a federal regulator said.

"It was a direct conflict," said Gaston Gianni, inspector general for the Federal Deposit insurance Corp., in testimony to the Senate banking committee Thursday. "

Outcome

Fault For Result Technologies: 70%-Ernst & Young 30%- Results Technologies
Fault for Schein: 60%- Ernst & Young 40%- Schein
Damages sustained by Results Technology, caused by Ernst & Young: 6,000,000
Damages sustained by Schein, caused by Ernst & Young: 10,000,000

Total: 16,000,000

Case Information
Attorneys
Witnesses
Plaintiff
Defense
Verdict
$16,000,000
Judge
Jeffrey Streitfeld
Jurisdiction
17th Judicial Circuit of Florida
Court
Judicial Complex
Case Number
03-266
Industry
Accounting
Practice Area
Malpractice, Fraud, Tort Law
Plaintiff
Schein, Alan
Defense
Ernst & Young
Expert Witnesses
Lay Witnesses

Sessions

JUN
29
JUN
30
JUL
1
PM Session
Not in Session
0 Chapters
JUL
2
JUL
6
JUL
7
JUL
8
JUL
9
JUL
10
JUL
13
JUL
14
JUL
15
JUL
16
AM Session
Not in Session
0 Chapters
PM Session
Not in Session
0 Chapters
JUL
17
JUL
20
PM Session
Verdict
1 Chapters
JUL
22

Recording Disclaimer: This proceeding was recorded in full.

Suggest a Trial

Want to see a trial that you don't see in our list of upcoming trials?

Suggest a Case

CVN Essentials

The most important and informative moments of each trial

CVN Essentials

Video Library

Unlimited access to thousands of hours of past coverage of high stakes civil litigation

Video Library

  • Follow Us
  • Contact Us
  • 4901 Olde Towne Parkway
  • Suite 100
  • Marietta, GA 30068
  • 877-834-8627
  • 404-935-0321

Copyright 2024 Courtroom Connect.

Privacy Policy | Terms and Conditions