"Auditing firm at fault, Smart Online claims"

Nexsen Pruet attorney Jay Hennig shares insight into civil malpractice cases with the Triangle Business Journal. 

Reporter Frank Vinluan's article is entitled "Auditing firm at fault, Smart Online claims."

Several executives and brokers have been convicted or pleaded guilty to charges related to securities fraud. But, the Smart Online has filed a malpractice suit against an outside auditor saying the company “either knew about the fraud or disregarded it.”

Hennig, who has no connection to this case, told the paper that “the malpractice count in such cases essentially claims that an auditor did not do its job… circumstances could have developed in a way that the auditor could not find the fraud.  But that will have to be determined at trial.”

Julian (Jay) Hennig, III practices with the firm's corporate and securities group as well as the litigation group.