1st Circuit nixes suits against lawyers and auditors of defendants in prior case

By Sheri Qualters
Law.com National Law Journal

Plaintiffs may not proceed with class actions against lawyers and auditors who worked for the defendants in an earlier class action, the U.S. Court of Appeals for the 1st Circuit has ruled.

On Sept. 22, a unanimous panel held that a constructive trust established by the judge in the first action could not reach payments made by the defendants to lawyers and accountants in exchange for services. It also ruled the new class actions were entirely new lawsuits, not enforcement actions for the prior case, and they could not proceed unless the class was certified anew. Continue reading “1st Circuit nixes suits against lawyers and auditors of defendants in prior case”