Adams v. Standard Knitting Mills Inc.
United States Court of Appeals for the Sixth Circuit
623 F.2d 422 (1980)
Relevant factsFree
Standard Knitting Mills merged with Chadbourn Inc. Before the merger, Chadbourn issued a proxy statement to shareholders that was reviewed by the accounting firm Peat Marwick Mitchell & Co. (defendant). After the merger, Chadbourn's financial condition proved worse than reported. Standard's shareholders (Adams) (plaintiff) sued Peat for a material misrepresentation in the proxy statement in violation of section 14 of the Exchange Act.
IssueFree
Whether an outside accountant must have intended to deceive to be liable for a material misrepresentation in a proxy statement in violation of section 14 of the Securities Exchange Act.
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