Coopers&Oregon - 5. Oregon goes public 6/13/96...

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1/11/2010 I need to find out if coopers & Lybrand are liable under the theory of negligence for incorrectly advising Oregon Steel Mills to report the sale of stock as a $12.3 million dollar gain on its financial reports. Defendant: Cooper Plaintiff: Oregon Fact: 1. Oregon hires Cooper = audit book / financial report 2. Coopers advised 12.3 million gain on financial report 3. Oregon wants to go to public 5/21/96 (Stock price = $16) 4. SEC rejects plaintiff’s financial report
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Unformatted text preview: 5. Oregon goes public 6/13/96 (Stock Price = $13.50) Proof Negligence Issue: Cooper is liable for Oregons for negligence Rule of law: Negligence is required - * Duty * Breach * Causation * Injury Analysis: Duty Cooper had a contract with Oregon Breach based on GAAP and GAAS (if its below breach) Conclusion: Causation Court says no causation because market def is fluctuation all the time. Also, no negligence because nobody Injury ....
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