Marc S. Kirschner, as Trustee of the Refco Litigation Trust, Appellant v. Kpmg LLP, Respondents…

Summary

The New York Court of Appeals affirmed the lower courts' dismissals and answered the certified questions, holding that the adverse‑interest exception does not apply where corporate insiders acted for their own benefit and that the doctrine of in pari delicto bars the derivative claims against auditors; the Court also held that the adverse‑interest exception does not apply in the Teachers’ Retirement case. Justice Ciparick dissented, arguing that the doctrine should not bar such claims.