Can Private Litigation Hold Auditors to Account?

Summary

The episode examines the rising trend of private litigation as a tool to hold audit firms accountable, sparked by concerns over potential SEC Chairman Paul Atkins' moves to weaken the PCAOB. Host Francine McKenna references her Substack post and discusses the historical Cenco Inc. v. Seidman case, highlighting Judge Richard Posner's controversial law‑and‑economics perspective. The conversation underscores how private lawsuits could fill regulatory gaps, while also critiquing the effectiveness and motivations behind such legal actions.