Investor’s claims of almost $100 million against LCBF client dismissed

In Paladini v. Capossela, Cohen, LLC, 2012 WL 3834655 (S.D.N.Y. 2012), Chief Judge Loretta Preska of the Southern District granted, with prejudice, the motion to dismiss LCBF filed on behalf of the accounting firm it represented. The Court found, among other things, that plaintiff's claims failed as a matter of law because of an absence of proximate cause. Specifically, the Court agreed with the accounting firm that plaintiff, when deciding to enter into two 2007 loans and distributions (for almost $100 million), could not have relied on the firm's 2007 audit in any manner as the audit was not completed until the following year. The LCBF team was headed by Sophia Ree.