• Continental Casualty Company' v. 'PricewaterhouseCoopers, LLP
  • July 27, 2010 | Authors: James J. Beha; Roberta A. Kaplan; Marco V. Masotti
  • Law Firm: Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office
  • In a decision issued on June 29, 2010, the New York Court of Appeals, in Continental Cas. Co. v. PricewaterhouseCoopers, LLP, held that investors who were limited partners in a hedge fund could not sue an outside accounting firm for the reduction in the value of their investment in the fund as a result of fraud because such claims were inherently derivative in nature and belonged to the fund itself and not to any individual investor. Thus, the court ruled that the investor plaintiffs could not bring a claim because they had not shown that they suffered any unique damages apart from losses shared by all the investors in the fund as a whole.