Legal Opinion
Cenco Inc. v. Seidman & Seidman
Court of Appeals for the Seventh Circuit
Decided March 26, 1982No. Nos. 81-2126, 81-2264PublishedCited by 242 opinions
1Opinion of the Court
POSNER, Circuit Judge.
We consider in this case the standards under the common law of Illinois governing the liability of independent auditors for failing to detect fraud by the management of the company audited; the standing of auditors under the RICO statute (Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961 et seq.) to sue such a company for damages; and — sua sponte, as we are obliged to do — questions of federal subject-matter jurisdiction.
Between 1970 and 1975, managerial employees of Cenco Incorporated engaged in a massive fraud. The fraud began in Cenco’s…
2Cases cited14 opinions
- Erie Railroad v. TompkinsSupreme Court of the United States · 1938
- United Mine Workers of America v. GibbsSupreme Court of the United States · 1966
- United States v. TurketteSupreme Court of the United States · 1981
- Walker v. Armco Steel Corp.Supreme Court of the United States · 1980
- Alvis v. RibarIllinois Supreme Court · 1981
9 more not listed; retrieve them via the Exa API.
3Cited by242 opinions
- O'Melveny & Myers v. Federal Deposit InsuranceSupreme Court of the United States · 1994
- Haroco, Inc. v. American National Bank and Trust Company of Chicago, Walter E. Heller International Corporation, & Ronald J. GrayheckCourt of Appeals for the Seventh Circuit · 1985
- Junior Ray Duckworth, Cross-Appellants v. Gayle Franzen, Cross-AppelleesCourt of Appeals for the Seventh Circuit · 1986
- Hirsch v. Arthur Andersen & Co.Court of Appeals for the Second Circuit · 1995
- Michelle Brazinski v. Amoco Petroleum Additives Company and Buck IsbellCourt of Appeals for the Seventh Circuit · 1993
237 more not listed; retrieve them via the Exa API.