Accounting Misstatements

Where a professional makes a negligent misstatement, causing a client to suffer financial loss, they or their company could face a claim for damages.

In order to prove the negligence, the claimant has to demonstrate that the professional owed the client a duty of care. In most professional-client relationships, a duty of care is automatically owed by the professional to the client but understanding precisely what the duty entails requires careful case-by-case consideration by experienced practitioners. Once it is shown that there is a duty of cared owed, there will be a need to demonstrate that the duty of care was breached for any liability to arise. In a negligent misstatement case, this can be apparent from the misstatement. Depending on the way the case is framed, it can also be necessary to show one has suffered financial loss as a direct result of the misstatement.

Misstatements may also be classed as fraudulent misrepresentation. Section 2 of the Fraud Act 2006 lays out the elements necessary to prove a fraud. There must have been a representation; the representation must be found to be false; there must have been dishonest intent, and there must have been personal gain or the person the statement was made having suffered loss.

In either case, there is a need for rigorous examination and an assessment of the options for you or your company.

Bright Line Law is highly regarded as a specialist provider, winning the Financial Times Innovative Lawyers of 2017 award, as well as being Top Ranked within the UK Bar Chambers for 2018 and 2019. Bright Line Law is a specialist provider in this area, contact a member of our team, call us on + 203 709 9470, or fill in our online enquiry form.

Jonathan Fisher QC
Lead Counsel

Email jf@brightlinelaw.co.uk
Telephone + 020 3872 2852

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