Nycal Corporation v. KPMG Peat Marwick LLP
Supreme Judicial Court of Massachusetts
688 N.E.2d 1368 (1988)
Relevant factsFree
KPMG audited Gulf Resources for inclusion in Gulf's public annual report, and Nycal later purchased a controlling stake in Gulf allegedly relying on that audit, becoming worthless after Gulf's bankruptcy; KPMG learned of the Nycal transaction only days before closing and had prepared the report solely for inclusion in Gulf's own annual report.
IssueFree
Whether an accountant may be held liable for providing false information, upon which another party relies to its detriment, if the information was not supplied for the benefit of the injured party or intended to be used in a transaction involving the injured party.