World Radio Laboratories, Inc. v. Lybrand

Hannon, Judge.

In this action, World Radio Laboratories, Inc. (WR), sued Coopers & Lybrand (C & L), an accounting partnership, for professional malpractice in connection with the latter’s audit of WR’s financial statements for the fiscal years ending in the last week of May or first week of June in the years 1981 through 1984. WR alleges C & L was negligent in auditing WR’s annual reports for those years because it did not discover a large account payable that was not listed on WR’s balance sheets for 1981 through 1984 and because it failed to advise WR’s management that its accounting system…