Arthur Andersen & Co. v. Perry Equipment Corp.

CORNYN, Justice.

We withdraw our opinion of January 10, 1997, and substitute the following in its place. The parties’ motions for rehearing are overruled.

In this accounting malpractice ease, Perry Equipment Corporation (PECO) sued the accounting firm of Arthur Andersen for a faulty audit, which PECO relied on to purchase another company, Maloney Pipeline Systems. The audit favorably reported Ma-loney’s financial condition when, in fact, the company was suffering substantial losses. Fourteen months after the sale, Maloney filed for bankruptcy. PECO sued for violations of the Deceptive Trade…