New York Court of Appeals Reaffirms Breadth of In Pari Delicto Defense for Outside Professionals

In a recent decision, New York’s highest court reaffirmed the breadth of the in pari delicto doctrine, which offers a powerful defense to investment banks, auditors and other outside professionals faced with claims that they allegedly assisted or failed to detect wrongdoing by a corporation’s management. The decision marks a contrast with recent decisions in a few other states that have eroded the doctrine, and ensures the continued availability of the defense under New York law, even at the dismissal motion stage.