BDO Seidman, LLP v. Mindis Acquisition Corp.

Fletcher, Chief Justice.

We granted certiorari in this case to consider the proper measure of damages in a negligent misrepresentation case. Because the Court of Appeals improperly utilized a fraud standard of damages for this negligence cause of action, we reverse.

Mindis Acquisition Corporation was formed to purchase Mindis Corporation. After the purchase was complete, MAC discovered that the inventory value of Mindis was less than what appeared on Mindis’s financial statements. MAC then sued Mindis’s accountants, BDO Seidman, LLP, for negligent misrepresentation, contending that BDO was…